Security News > 2022 > November > Kioxia warns of potential cost of US chip policy over China

Attempts to reorganize supply chains to cut out China and foil its attempts to build a high-tech chip industry will be costly and may simply cause the Middle Kingdom to redouble its efforts, says memory maker Kioxia.

Flores said China would likely retaliate against the recently announced US export controls by ramping up domestic investment in NAND as a long-term solution to its chip supply issues.

In the interview, Flores picked out in particular chipmaker YMTC, which was one of 31 Chinese firms to be added to the US government's Unverified List earlier this month and which is regarded as a potential rival to Kioxia.

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While Kioxia might benefit from any chilling effect that US sanctions have on YMTC and its ability to produce high-end memory, Flores said that China is also expected to accelerate its development of domestic capabilities in response, which could pose a more serious threat in the longer term.

As we reported earlier this month, stocks in semiconductor companies were down following news of additional US measures amid fears that the US and China are now involved in an economic war that will affect global trade.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/11/01/kioxia_china_us_policy/