{"id":49120,"date":"2022-11-01T10:30:11","date_gmt":"2022-11-01T10:30:11","guid":{"rendered":"https:\/\/www.threatshub.org\/blog\/kioxia-warns-uncle-sam-be-careful-what-you-wish-for-with-china-sanctions\/"},"modified":"2022-11-01T10:30:11","modified_gmt":"2022-11-01T10:30:11","slug":"kioxia-warns-uncle-sam-be-careful-what-you-wish-for-with-china-sanctions","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/kioxia-warns-uncle-sam-be-careful-what-you-wish-for-with-china-sanctions\/","title":{"rendered":"Kioxia warns Uncle Sam: Be careful what you wish for with China sanctions"},"content":{"rendered":"<p>Attempts to reorganize supply chains to cut out China and foil its attempts to build a high-tech chip industry will be costly and may simply cause the Middle Kingdom to redouble its efforts, says memory maker Kioxia.<\/p>\n<p>The warning came in an <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/www.ft.com\/content\/423a9a81-193f-4b3b-9a0a-bfea3da641d7\">interview<\/a> [paywalled] with the <em>Financial Times<\/em> by Lorenzo Flores, vice-chair of Kioxia, formerly Toshiba Memory. Flores said China would likely retaliate against the recently announced US export controls by ramping up domestic investment in NAND as a long-term solution to its chip supply issues.<\/p>\n<p>Washington&#8217;s <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/10\/21\/economic_cold_war_looms_as\/\" rel=\"noopener\">latest sanctions<\/a> put a ban on the export of manufacturing tools used for advanced semiconductors, and also require any US citizen or entity to seek permission from the Department of Commerce for any involvement with chipmaking in China. The latter in particular has forced many tech companies \u2013 Kioxia included \u2013 to ask US passport holders in key technical positions to leave the company in order to comply with the new rules.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"condor\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2Y2ESixMfQ@bOUKq8RzpHMwAAAJY&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2Y2ESixMfQ@bOUKq8RzpHMwAAAJY&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>But in the interview, Flores picked out in particular chipmaker YMTC, which was one of 31 Chinese firms to be added to the US government&#8217;s <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/10\/07\/biden_china_chips\/\" rel=\"noopener\">Unverified List<\/a> earlier this month and which is regarded as a potential rival to Kioxia.<\/p>\n<p>&#8220;We&#8217;ve always viewed YMTC as a company that one needed to monitor or understand, and they were potentially an emerging competitor,&#8221; Flores said.<\/p>\n<p>While Kioxia might benefit from any chilling effect that US sanctions have on YMTC and its ability to produce high-end memory, Flores said that China is also expected to accelerate its development of domestic capabilities in response, which could pose a more serious threat in the longer term.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xmd=\",fluid,mpu,leaderboard,\" data-lg=\",fluid,mpu,leaderboard,\" data-xlg=\",fluid,billboard,superleaderboard,mpu,leaderboard,\" data-xxlg=\",fluid,billboard,superleaderboard,brandwidth,brandimpact,leaderboard,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y2ESixMfQ@bOUKq8RzpHMwAAAJY&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y2ESixMfQ@bOUKq8RzpHMwAAAJY&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>As we reported <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/10\/10\/new_us_export_controls_could\/\" rel=\"noopener\">earlier this month<\/a>, stocks in semiconductor companies were down following news of additional US measures amid fears that the US and China are now involved in an economic war that will affect global trade.<\/p>\n<p>Kioxia is already <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/09\/30\/chipmakers_cut_output\/\" rel=\"noopener\">cutting flash memory production<\/a> in line with the worsening market conditions. The company announced at the end of September that it is making production adjustments that will see it reduce its wafer start production volume by approximately 30 percent.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y2ESixMfQ@bOUKq8RzpHMwAAAJY&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y2ESixMfQ@bOUKq8RzpHMwAAAJY&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>Others making similar moves include <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/09\/30\/chipmakers_cut_output\/\" rel=\"noopener\">Micron<\/a>, <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/10\/13\/tsmc_q3_2022\/\" rel=\"noopener\">TSMC<\/a>, <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/10\/26\/sk_hynix_q3_2022\/\" rel=\"noopener\">SK hynix<\/a> and more, but <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2022\/10\/27\/samsung_memory_investment\/\" rel=\"noopener\">Samsung<\/a> has left its production expansion bleuprint unchanged in the belief that the chip sector will grow rapidly again in the not-too-distant future. \u00ae<\/p>\n<p> READ MORE <a href=\"https:\/\/go.theregister.com\/feed\/www.theregister.com\/2022\/11\/01\/kioxia_china_us_policy\/\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nice NAND industry you have there, would be a shame if something happened to it Attempts to reorganize supply chains to cut out China and foil its attempts to build a high-tech chip industry will be costly and may simply cause the Middle Kingdom to redouble its efforts, says memory maker Kioxia.\u2026 READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[63],"tags":[],"class_list":["post-49120","post","type-post","status-publish","format-standard","hentry","category-the-register"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Kioxia warns Uncle Sam: Be careful what you wish for with China sanctions 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security &amp; Cyber Threats Analysis 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