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
PRC Company Watch List

The following companies raise several red flags and should be subject to action – or further action – by the U.S. government and its allies because of their proximity to China’s industrial policy ecosystem, ties to China’s military and surveillance ecosystems, financial performance, and global profile.

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Monthly Chip Risk Monitor

Monthly Note – February 2024

A public service announcement up front:  This is the Chip Risk Monitor’s latest monthly installment, brought to you by Horizon Advisory’s team of supply chain and geopolitical intelligence analysts. The goal with the Chip Risk Monitor is to highlight the hidden risks buried in semiconductor dependencies on China and to move from awareness of those risks to…

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