Monthly Risk Analysis of the PRC’s Chip Champions
The People’s Republic of China’s (PRC) semiconductor champions pose significant national and economic security threats to the United States. Through regular examination of objective risk and contamination risk, Horizon Advisory’s Chip Risk Monitor is designed to provide decision makers with consolidated and timely threat assessments as well as policy recommendations. To learn more about our purpose and methodology, click here.
ChangXin Memory Technologies (CXMT) Risk Level: ELEVATED U.S. Designation: DoD Section 889 List
Yangtze Memory Technologies Corporation (YMTC) Risk Level: ELEVATED U.S. Designation: Commerce Entity List; DoD Section 889 List
Consequences and Policy Remedies
The risk environment presented by China’s semiconductor champions and their global market presence demands new and expanded lines of both offense and defense from the US government and industry. Concrete priorities should include:
- Guaranteeing trusted approaches to government and private sector investment, including through enforcement of guardrails on CHIPS Act funding
- Expansion of transparency efforts that will activate market pressures to de-couple from Chinese semiconductor supply lines
- Enforcement of authorities attached to existing critical supply chain protections (e.g., DoD Section 889 and Section 1260H)
- Expansion of export restriction enforcement and scope through the Department of Commerce’s Entity List authorities