Chinese spies stole trade secrets from Dutch chip machine maker ASML: report
nltimes.nl
nltimes.nl
Main points raised there:
1) This story is about four employees, who were not closely familiar to the core technology of ASML.
2) Looking at the circumstances, it seems far more likely that this was an action by ex-exployees with commercial motives, rather than government-sponsored spying.
3) ASMLs core technology simply remains in The Netherlands. An anecdote: 15 years ago ASML came with the most advanced lithography scanner of that time. It was copied in China to the last screw, but the device simply didn't work, because they lacked intricate knowledge on its actual operation.
[1] https://www.npostart.nl/nieuwsuur/16-04-2019/VPWON_1297076
Also, for example, he said "[people talk about] senior R&D employees", but it is subtitled as "a wave of employees".
The three points above are accurate however.
Not sure, but wasn't China their biggest client? And they didn't want to offend them, I think.
I remember reading about it vaguely?
https://nos.nl/artikel/2280789-samsung-had-rol-bij-spionage-...
Google translated:
'He probably refers to Samsung. That company would have "spoused" the spies to steal the software and start their own business, thereby creating a competitor for ASML. The software is needed to set up chip machines for optimum production of electronic chips.
In 2016, Samsung became a 30 percent shareholder in Xtal, and ASML subsequently lost Samsung as a customer for this software.'
Which doesn't surprise me, as that's practically ingrained in the Chinese culture, and is another factor to take into account when hiring Chinese people.
I understand what you mean, but it's literally illegal to take any factor into account when hiring Chinese people (literal racism). It's literally a protected status.
Is there some other way to interview and test whether someone will steal your code and send it to China, other than the fact that they're Chinese?
If you can come up with an alternative test you give everyone, it's okay. Using nationality as a shortcut is not OK.
Intel wasn't able to get their chipset working well despite a treasure trove of Qualcomm code and documents, even with the ability to question Qualcomm engineers via Apple.
Meanwhile, Hygon (the AMD/China joint venture) has produced the Dhyana, virtually identical to AMD's EPYC chips of a year prior.
The limiting factor for Hygon fulfiling its goals (home grown, performant cores) faces many challenges, as AMD is moving to 7nm at TSMC, while the bleeding edge at Chinese fabs (and nearly all other fabs) is 14nm. Even Intel hasn't been able to jump above 14nm and make a sizeable number of chips.
Even if Hygon were to steal AMD's newer design, they have no native fabs to manufacture it, and they likely won't for another few years. Permanent industry laggard puts you in the same position as VIA, never making good profit or breaking ahead of competitors.
The head line is confusing, but it reads "Dutch chip machine maker"
I suppose the best approach is to avoid doing business with them.
Perhaps the current US Administrations position concerning China warrants wide spread support.
Supposedly, in the cheapest Chinese-produced goods, it sometimes happens that screws are made not entirely from metal, but are just a metal casing around sand.
I do think it's worth considering whether this will result in a better world overall. It's a loss for many Americans, but perhaps a net-gain for humanity as a whole? If China is able to drive the price of high-quality goods down on a global scale, that might be a good thing, right?
I'd like to be optimistic about all of this. I'm hoping that most of us on HN in the USA will ultimately benefit from us, for lack of a better term, losing.
Planned famines could be a part of that domination. I'd argue that they're easier to cause now than ever if you can disrupt supply chains, and that's easy to do if you control transportation routes and infrastructure.
Wow! What a concept!
alas, that'll never work.
It could just be a case of pass-the-message, but the C-level guys often seemed so unconcerned that you'd have to wonder if they were also in on it. After all, the Chinese do have money, and everyone likes money.
Western companies do not care about losing IP. They say they care but they don't really. It is just a cost of doing business. They know they are losing IP, but they are going for short term profit (either from the Chinese market or from cheaper manufacturing in China). When the chickens come home to roost the CEO will have been paid big bonuses and ready to move on. If the CEO did not save costs or expand into China, shareholders would have revolted and replaced the CEO anyway.
The West (USA + Canada, EU + UK, Australia) could circle the wagons, form a trading bloc, essentially negotiate with China as a single entity and start a trade war if China did not bend. But even if they wanted to do so, the cost would be high in the short term and voters would punish them.
What might stop China is if another large country such as India, Indonesia or Nigeria decided to position themselves as the ethical alternative: cheap labor and manufacturing without the rampant state sponsored IP theft.
China depends a lot less on trade than NATO countries, something like 3% of their GDP is making stuff for Western consumers. If there is a serious Trade War their main concern would be their own real estate market instead of selling plastic toys to US consumers.
China's secondary trading block are near Asian countries.
The "west" collectively have a population LESS than China, and they cannot even hold the "EU" together.
China also has major cards, in a situation that you describe above does happen.
- The first thing China will do is sell their treasury holdings, creating enough shockwaves in the bond market to wipe of the retirement saving of most boomers, (remember that the median US national has no saving).
- They will unilaterally stop following any sanction / not officially , but unofficially they will sell whatever Iran / NK / Russia want to buy from them. Iran alone has enough oil reserves to meet their energy needs, not to bring up the cozy relationship between Putin and Xi.
- 1970 style inflation in western countries that have outsourced all their electrial engineering work to China, the west doesn't have a collection of mega city that is the Pearl River Delta - China's greatest asset.
There is no way greater New York will be able compete directly with PRD.
It will require infrastracture spending at a level that would be unprecedented in US history comparable to WW2 - putting inflation pressure on resources. Not to mention major displacement of workers - who might not want to go back to working in a factory floor.
All this will be painful to both the "West" and China.
> What might stop China is if another large country such as India, Indonesia or Nigeria decided to position themselves as the ethical alternative: cheap labor and manufacturing without the rampant state sponsored IP theft.
Try starting a tea shop in India and then come back to me - I know I tried.
You will have to pay bribe to 3 government bureaucrats, 5 state bureaucrats, 2 local mafias leader, leaving aside politians who will come at our door if your business gets big enough.
India / Indonesia are democracies with all the mess that democracy involves. Most MNCs rather put their money in Saudi Arabia then invest in unstable democracies.
India / Indonesia will industrialize on their own terms and will mostly stay neutral since they dislike being pawns between great powers.
"Andy Wong, an export manager of Guanya Lighting, said that his company, which mainly sells desk lamps, is struggling to make adjustments to the new global trade reality, in which bulk orders for thousands, or even tens of thousands, of lamps from US and European retailers have disappeared, replaced by small orders from smaller buyers in “Belt and Road Initiative” countries in Asia and Africa as part of China's plan to grow global trade."
“We used to set a minimum order of 1,000 units. Now we take minimum orders of 20 units,” he said.
China’s exporters fear heyday is over amid sour mood at Canton Fair as US-China trade war lingers https://www.scmp.com/economy/china-economy/article/3006884/c...
- Indonesian's will never let the Chinese run over them like they have, like for instance, Sri Lanka, etc. Sure, they will buy cheap Chinese goods begrudgingly when something else better may be priced out of their range, but make no mistake, the government will continue to sink Chinese fishing boats encroaching into their waters and the people, if called upon within their religious communities (esp from groups like FPI which has fringe connections to not only the fmr general under the 30 years president [and some US 3 letter agencies through him]), many will go to every suspected Chinese house/business) and rob/steal/rape and kill (1960's and 1990's).
- In Indonesia, this is very much not the case how they perceive western governments (or people), though they very much want to pursue what is best for them on their own terms but the political establishment understands that needs to come from an economic standpoint first and foremost. One way they do this now is by managing foreign denominated liabilities through strict import policies.
If you haven't noticed, major manufactures in the world over the past 20 years have been increasing their operations in Indonesia…
Cant speak for India, but the biggest tail risk for any Indonesian government is the lack of ability to bring some of the economic wealth from the bigger cities and tourist attractions to those places that lack it because there are some pretty big logistical challenges with all of the islands and lack of incentives (outside of the gov partnerships with some western companies for natural resource extraction) for big corporate and political parties alike (they like to show up during elections and disappear until the next one) to do anything sustainable.
That's not correct. Exports account for more close to 20% of GDP.
One of the reasons Chinese companies can manufacture so cheaply is the possibility of IP theft. The west want to pay their poor less to manufacture things cheaply. The Chinese want to pay the western rich less to use their technology.
Calling IP theft unethical in a sentence with cheap labour is oxymoronic.
So isn't it unethical to work in the west? Shouldn't we be shipping jobs and tech off to China faster, since they have lower suicide rates?
Those might be the group who lost their job to China.
[0]: https://www.forbes.com/sites/timworstall/2013/07/10/apples-c...
- Sony closing smartphone plant in China, moving production to Thailand https://www.gizmochina.com/2019/03/28/sony-closing-smartphon...
- Samsung Downsizes China Operations With Factory Closure https://www.wsj.com/articles/samsung-downsizes-china-operati...
- Taiwan server makers under pressure to speed up move-out from China https://www.digitimes.com/news/a20181008PD212.html
- Foxconn moves manufacturing out of China https://www.freightwaves.com/news/economics/foxconn-moves-ou...
- GoPro is moving camera production out of China, citing tariff worries https://www.cnbc.com/2018/12/10/gopro-is-moving-camera-produ...
- Ricoh shifts production out of China https://www.therecycler.com/posts/ricoh-shifts-production-ou...
- Amazon will no longer sell Chinese goods in China https://www.cnn.com/2019/04/18/tech/amazon-closes-china/inde...
And "stop selling China goods" is a very weird way to word it, even though it's technically correct.
what they're doing is essentially closing their China branch due to low market share, but keep the "imported goods" portion because they still have some edge on that regard due to Amazon's global presence.
I’m happy to discuss how to maintain tech superiority in America as long as it doesn’t turn into a witch-hunt against immigrants. It’s far easier to fan fears than to calm them, this should be reflected in how we communicate.
Most of this "spies" are trying to escape China ! all the regime did was offer them more money / opportunity than what they went to the West to find.
China could have achieved it through "turing" normal white citizens too / but I guess they are the real patriots ? Mark Zukerburg learnt mandarin for god's sake.
Its a game among capitalists and most of us regardless of nationality will switch sides to whoever gives the most value.
Your second sentence directly contradicts the first. The "spies" aren't escaping China - they're playing whatever side has more money to throw at them.
Considering most people spend 8+ hours a day working for money, I'd say yes, everyone is driven by money above all things.
Just look at the millineals, I mean, excuse me, new college grads. They shit talk Facebook's ethics, but the moment they receive a $100,000 job offer from Facebook, their ethics go out the window and they accept the offer from this "shady-ass" company.