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U.S. Government Indicts Chinese DRAM Maker JHICC on Industrial Espionage; Bans Exports To Firm
The U.S. Department of Commerce [DoC] this week banned U.S. exports to a China-based maker of DRAM. The DoC believes that Fujian Jinhua Integrated Circuit Company (also known as Fujian or JHICC) not only uses technologies obtained from Micron, but also threatens the latter's long-term economic viability and therefore could also be involved in activities that are contrary to the U.S. national security interests.
In the meantime, the U.S. Department of Justice [DoJ] has also filed an indictment against JHICC, United Microelectronics Corp. (UMC), and several individuals accusing them of corporate espionage and stealing IP from Micron. Between the two, the U.S. authorities essentially sided with claims that Chinese makers of memory have illegally obtained IP and technologies from DRAM makers from the U.S. and potentially other countries.
As a result of DoC actions against JHICC, all U.S.-based (and, actually, non-U.S.-based too) companies will require a special license for all exports, re-exports, and transfers of commodities, software and technology subject to the Export Administration Regulations (EAR). DoC makes no secret that such license applications will be "reviewed with a presumption of denial", so it will be tremendously hard for JHICC to obtain practically everything, including Windows 7 licenses for manufacturing equipment and production tools themselves (ASML has a strong presence in the U.S., whereas Nikon Precision is based in California). Meanwhile, the whole situation is somewhat more complex.
Related: Tsinghua to Build $30 Billion DRAM/NAND Fabrication Plant in Nanjing, China
(Score: 4, Interesting) by qzm on Friday November 02 2018, @08:20PM (6 children)
Great. So does that mean the US will also punish their own companies who profit by having their goods made in sweat ships that would be illegal under US law?
Not to mention the complete lack of any due process here. One side has accused the other of such things, not proven anything..
All sounds very world police/kangaroo court at this stage.
I'm not saying it is not true, however 'siding with' doesn't sound very convincing I am afraid.
As to thinking non-us companies have to follow the rules.. because they have a us presence.. hmmm.
I wonder how the us will feel of that gets a bit of turn around on them.. not so good I expect.
Google has a presence is most countries.. should everyone start enforcing laws on what they can do in the us?
(Score: 2) by MostCynical on Friday November 02 2018, @08:26PM (2 children)
But the US only stole* from the nazis.
*Relocated scientists in war time
"I guess once you start doubting, there's no end to it." -Batou, Ghost in the Shell: Stand Alone Complex
(Score: 2) by legont on Saturday November 03 2018, @12:31AM
The US stole mostly from British.
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.
(Score: 0) by Anonymous Coward on Saturday November 03 2018, @01:21AM
The US stole parts of their space program from the Soviet Union:
https://www.popsci.com/cias-bold-kidnapping-soviet-spacecraft [popsci.com]
(Score: 2) by requerdanos on Friday November 02 2018, @08:41PM
International law, as well as U.S. law as it applies to business done in other countries, is complex, but in general, the answer is a qualified "yes".
For example, one penalty is that it will now be more difficult for these shady operations to sell any of their products to Fujian Jinhua Integrated Circuit Company.
(Score: 0) by Anonymous Coward on Friday November 02 2018, @08:48PM (1 child)
In China, it's the Chinese laws, as in American, it's American laws. The problem is the trading treaty between the two.
Back in the days, Chinese needed help, so we gave them some. It ain't like that no more, with them being the second biggest economy in the world.
No more IP theft, no more illegal contamination, no more illegal fishing fleets, no more of them chicom nonsenese. If they don't respect the international norms of trade, I don't see why we should when dealing with the Chinese.
Lastly, if you love China so much, go back to China then.
(Score: 3, Interesting) by Sulla on Friday November 02 2018, @09:20PM
I'd like to go back to China, but the standard of living is too low! We need to hurry up the transfer of research, development, and manufacturing to China so that we can build it up and I can move back once the US is wrung dry
Ceterum censeo Sinae esse delendam