Skip links

Alibaba’s Youku Debuts ‘My Chinese Chip:’ Journey China’s Advanced Chip Development Tiding Past US Embargo – Alibaba Group Holding (NYSE:BABA), ASML Holding (NASDAQ:ASML)

The series “My Chinese Chip” is set to air on Alibaba Group Holding Limited’s BABA Youku platform and focuses on the semiconductor leadership and self-sufficiency theme, an essential priority for the Chinese government. 

The storyline revolves around a state-supported startup that successfully develops lasers for deep ultraviolet lithography machines.

The show highlights the challenges the domestic company faces in overcoming trade sanctions and technological restrictions that prevent the acquisition of advanced chipmaking technology from multinational suppliers, Bloomberg reports.

One of the significant obstacles depicted in the series is the trade war between the U.S. and China, which has led to restrictions on the sale of advanced chipmaking equipment, particularly extreme ultraviolet lithography systems, provided by ASML Holding NV ASML.

ASML, a leading supplier of lithography systems, has been unable to sell its most advanced machines to China since the Trump administration pressured the Dutch government to deny a license for their export.

Earlier this year, the agreement between the Netherlands and the U.S. further limited ASML’s sales, affecting its deep ultraviolet (DUV) systems, which are crucial for manufacturing a wide range of chips used in various electronic devices.

The restrictions on advanced chipmaking equipment have underscored China’s need to enhance its self-sufficiency and develop domestic capabilities to meet its semiconductor demands, thereby reducing its dependence on foreign suppliers.

“My Chinese Chip” aims to showcase China’s determination to overcome these challenges and achieve technological independence in the semiconductor industry.

Taiwan Semiconductor Manufacturing Company Ltd’s TSM retired founder Morris Chang and Nvidia Corp NVDA chief Jensen Huang had warned against the repercussions of the U.S. semiconductor embargo on China.

They had flagged higher costs and reduced availability of vital chips due to the restrictions.

Huang had voiced how the sanctions have handicapped chipmakers like Nvidia from selling its advanced chips in one of the company’s biggest and most important markets.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

© 2023 Benzinga does not provide investment advice. All rights reserved.

This website uses cookies to improve your web experience.