- The U.S. Govt has now removed Chinese-based companies CXMT and YTMC from its restricted list.
- This move has been made in an effort to prevent a memory collapse as supply becomes volatile with each passing day.
- More manufacturers have started turning to Chinese companies for memory supply to keep prices under control.
The US government has reversed its policy of restricting Chinese technology companies, easing the bans on CXMT and YMTC. As the title suggests, the reason is straightforward: the American industry requires the knowledge of these Chinese firms to prevent collapse.
Just a day before, the U.S. Department of War (DoD) released an update to its Section 1260H list, which was withdrawn about an hour later.
The list included an inventory of businesses that Washington deems “Chinese military companies,” meaning they are either Chinese military companies or companies associated with China’s military-civilian fusion efforts.
The nearly immediate withdrawal raised more questions than answers. According to Reuters, the Pentagon asked the Federal Register to delete the “public inspection” notice without saying why, and neither the White House nor the Department of War disclosed the reason at the time.
From a political perspective, the back-and-forth fueled speculation about internal disorganization or an incomplete interagency validation process: Reuters reported that some “removals” were still being reviewed, even as the “additions” appeared more stable.
In this way, the removal of CXMT and YMTC from the market creates, on paper, a new pathway for the use of Chinese DRAM and NAND memory in consumer products and global supply chains.
Essentially, the United States is doing what the entire industry, particularly the PC business, has been asking for: seriously considering adopting Chinese memory to assist in the present situation where it is virtually nonexistent, resulting in massive price rises.
It is worth noting that HP, Dell, Acer, and ASUS were already investigating the use of this Chinese memory. But to do so, they need the US government to lift the ban. In January, HP took the lead by limiting the usage of this RAM to hardware sold in China.
In the case of YMTC, Reuters has reported on its legal struggle with the US government over the military designation. It also discusses its disagreements with the Commerce Department over other lists and restrictions on access to US technology.
This latest incident occurs at a sensitive diplomatic juncture, amid a climate of relative de-escalation following a trade truce established in October. Not to mention Donald Trump’s upcoming trip to China in April, which underscores the notion that the administration is attempting to strike the right tone with Beijing.
In a market where memory is a crucial component in terms of both cost and availability, both CXMT and YMTC may become popular alternative providers at the industrial level. Larger projects like the mass manufacturing of HBM3 memory for Huawei’s Ascend 950 AI chips are currently CXMT’s main priorities. It would, however, welcome more profits from its production line of DDR5 and DDR4 memory.
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[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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