The new US rules will have "a material adverse effect" on its ability to develop highly advanced chips, it said. That's because Washingtonhas said that any request to exporttechneeded to produce super advanced chips " will be subject to a presumption of denial " — a major problem for SMIC, which uses American-made software and equipment to create its chips. "given the Chinese semiconductor sector a sober reminder of the urgency of building a self-controlled industry chain." The Global Times, a state-run tabloid, reported Monday that the latest restrictions have"given the Chinese semiconductor sector a sober reminder of the urgency of building a self-controlled industry chain." But it is still far from being able to manufacture advanced chips without a reliable way to source US equipment.

Source: CNN December 22, 2020 09:45 UTC