The heavy continuation of the US embargo has locked down Chinese chip designers and manufacturers. While Huawei’s record-breaking HiSilicon subsidiary fell into silence, China’s largest founder SMIC was also blacklisted. China is trying to find a different method.

Light rains on the flea market

There is a shortage of stocks in the chip industry recently and producers are having difficulty finding chips. The two giant names of the industry TSMC ve Samsung Although it cannot keep up with the intense demands, it has increased its income significantly.

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On the other side of the coin is China. As a result of heavy embargoes, giants like Huawei can no longer design chips. Foundries like SMIC have been blacklisted and cannot enter into a commercial relationship with any company using US equipment.

In order to overcome this bottleneck, Chinese companies turned to second-hand chip production equipment. According to the information received, second-hand Japanese chip production equipment is almost plundered. It is stated that the stocks of the equipment that are not covered by the embargo because they are bought from second-hand platforms are completely finished.

According to the information received, almost 90 percent of second-hand chip production equipment is sold to China. It is emphasized that even those who do not pay much for the equipment, which is said to triple the prices, go up to 1 million dollars. Consequently, the faces of Japanese vendors who have invested their systems in showcases until today are also smiling.

Sources state that China has made great efforts to establish its own chip casting systems. Startups like SMIC have an intention to start at least somewhere by going through second-hand systems. Currently, it is not possible to purchase new equipment. However, designing and producing chips without US technologies is not something even China can handle.

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