Lawmakers are calling for ChangXin Memory Technologies to be placed on the Commerce Department's trade blacklist to halt its access to American technological resources. The manufacturer has rapidly become the world's fourth-largest DRAM producer, threatening market leaders while expanding into advanced hardware essential for artificial intelligence. Scrutiny has increased further following reports that major tech giants like Apple have weighed sourcing components from the Chinese firm to mitigate industry-wide supply shortages.
Key points
Blacklisting CXMT on the Entity List would establish far stricter trade restrictions than…: Blacklisting CXMT on the Entity List would establish far stricter trade restrictions than its current Pentagon designation.
Expanding commercial business with Chinese memory makers threatens to accelerate China's…: Expanding commercial business with Chinese memory makers threatens to accelerate China's domestic semiconductor capabilities and supply chain power.
Advanced DRAM manufacturing serves as a foundational gateway for producing high-bandwidth…: Advanced DRAM manufacturing serves as a foundational gateway for producing high-bandwidth memory hardware critical to military and economic security.
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Sen. Tom Cotton, R-Ark., is urging the Trump administration to take a harsher stance towards Chinese memory maker ChangXin Memory Technologies.
"CXMT, one of Communist China's national memory chip champions, poses a growing risk to our economic prosperity and military superiority," Cotton wrote in a letter sent Thursday to Commerce Secretary Howard Lutnick. "The U.S. must take action to prevent CXMT from gaining a stronger foothold in the global market."
CXMT is the world's fourth-largest producer of DRAM – or dynamic random access memory – which powers many basic functions of computers and smartphones.
Cotton, in a letter first obtained by CNBC, is asking Commerce Secretary Howard Lutnick to push CXMT onto the department's Bureau of Industry and Security Entity List, which would significantly restrict U.S. firms' ability to do business with the company.
"It basically means that U.S. companies are not allowed to do business with that entity-listed company, and that entity-listed company does not get access to U.S. technology," said Kyle Chan, a Brookings Institution fellow who studies China's technology development.
DRAM is a "commodity," Counterpoint research director…
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