US-China chip war to hit affiliates of server maker Inspur


In a relocation that highlights how the continuous US-China chip war is interfering with the worldwide semiconductor supply chain, the United States is taking measures to address a gap in limitations troubled Chinese server maker Inspur Group that leaves US companies complimentary to continue providing Inspur’s affiliates, of which there are lots, according to a report by Bloomberg.

Inspur sells servers targeted at AI and huge information workloads, and operates worldwide, including in the United States, Europe, the Middle East, Latin America, and Asia-Pacific.

Previously this month, the Biden administration added 37 more entities, including Inspur, to a trade blocklist. The blocklist includes companies to which United States semiconductor makers and manufacturers of chip-making devices may not offer products without unique licenses.The companies

were added to the blocklist for, “among other activities, adding to Russia’s military and/or defense industrial base, supporting PRC military modernization, and facilitating or engaging in human rights abuses in Burma and in individuals’s Republic of China (PRC),” the US Department of Commerce stated in a statement.The Biden administration, including authorities at the Commerce Department, understands that the chip blocklist does not particularly cover Inspur affiliates and is working to close the space, however that might take several weeks, according to the Bloomberg report. Up until then business consisting of Intel, Nvidia, and Cisco, among others, are free to trade with Inspur without the need for a license.Inspur wants to mitigate dangers from US sanctions On The Other Hand, Inspur Electronic Info Industry, a significant unit of the Inspur Group, assembled a board meeting today to alter its home area from the address of its business parent to a location which is

about two kilometers away, according to a report by Hong-Kong based newspaper South China Early morning Post. The business did not cite reasons for the change, however the choice was made simply days after the United States Department of Commerce included Inspur Group to the trade blocklist, the report included. Inspur Electronic Info Industry is, however,

a separate legal entity from its parent business and is not currently on the blocklist.The change of business residence, signaling a distancing of the affiliate from the rest of the Inspur group,”partially reflects the limited alternatives offered to Chinese tech firms when it concerns alleviating the dangers of US sanctions provided their dependence on American elements or technologies,”the South China Early morning Post report included. The US semiconductor trade limitations seem taking a toll on Chinese companies. For example, Chinese chip-maker YMTC, which has been looking to challenge Samsung Electronic devices and SK Hynix, has actually needed to lay off workers and put he brakes on growth plans after it was

contributed to the blocklist, the South China Morning Post report noted.US pressures allies on chip export constraints As part of a more comprehensive trade war with China, the US had some months ago persuaded the Netherlands and Japan to join it in banning transfers of some DUV equipment. The Netherlands export constraints have remained in the works for some time, and on Wednesday the Dutch federal government published more information on its strategies.”These new export

controls concentrate on sophisticated chip manufacturing innovation, including the most sophisticated deposition and immersion lithography tools,”according to a statement by Netherlands-based ASML, a leading worldwide maker of semiconductor manufacturing equipment. The US-China chip war puts all sorts of global enterprises in the crosshairs, given that … Source

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