Idiots in the US government have decided that the best way to handle a nationwide RAM shortage is to cut off more supply from Chinese suppliers.
The planet is staring at DRAM shortages and begging for every last stick of RAM it can grab. The US thinks that a little bit of paranoia is the way forward, believing that the Chinese can read government secrets through memory sticks.
It is important to note that even if such an attack vector were possible, it would be extremely obvious, but that has not stopped a new “rulemaking” from the Federal Acquisition Regulatory Council from targeting Yangtze Memory Technologies Co and ChangXin Memory Technologies, with Semiconductor Manufacturing International Corp also in the crosshairs.
The timing is classic Washington. The “big three” memory suppliers are busy feeding enterprise demand, consumer kit is left scrapping for leftovers, and the US wants to set fire to another chunk of supply.
Federal Acquisition Regulatory Council said: “Covered semiconductor product or service” is defined to include semiconductors, products that incorporate a semiconductor product, or services that utilise a semiconductor product, that are designed, produced, or provided by SMIC, CXMT, YMTC, or any of their affiliates, subsidiaries, or successors.
The proposal tweaks Section 5949 of the FY23 National Defence Authorisation Act, expanding earlier limits and outlining how a ban would apply to commercial products.
One twist is that it bites on products worth $15,000 or less, so the net is wide enough to scoop up off-the-shelf IT and telecoms services, not just bespoke kit.
Federal Acquisition Regulatory Council wants an extensive review of electronic products already in official use, because nothing says “efficient procurement” like ripping through inventories during a supply squeeze.
If items are bought before 23 December 2027, the new limits will not apply, which is a tidy little carve-out for panic buying and box-ticking.
The amendment is open for public review until 20 April, so the administration is still pretending it is listening while signalling it wants Chinese components pushed out of government-end products.
The bigger problem is practical. Laptop and phone makers will think twice about using CXMT or YMTC in mainstream products if government use is forbidden. This will mean that they will have to use the overpriced RAM from US government-friendly producers and pass the cost on to the customer.
Major PC makers have contacted CXMT about possible DRAM collaboration, and the talks now sit in the shadow of another US policy tantrum.
