US-China Advanced Chip Rivalry
Last year, a veteran Silicon Valley software executive took the helm of a startup in his native China, company records show. The startup told potential investors it would sell microchip design software that is mostly available from just a handful of large Western companies.

The coveted and highly specialized software tool, known by its initials of OPC, is used in the design of many microchips and is crucial to the design of advanced chips.

The production of advanced chips is one of the most contentious technological struggles now dividing the United States and China as they vie for economic and military supremacy. Washington is trying to curb China’s access to sensitive microchip design tools.

The strategy behind the startup, dubbed SEIDA, shows why that containment effort is so challenging.

Before becoming chief executive of SEIDA, Liguo “Recoo” Zhang had lived in the United States long enough to secure permanent residency and purchase a Silicon Valley home, according to people familiar with his career and public records reviewed by Reuters.

So…Is Zhang an industrial spy or just a capitalist making hay?


Neither is how this works.

Instead, ideas walk. If he decides to live with family in China he heads back to live in China. Totally innocent. He wants an executive job he has such a job. Ideas walk. He does not have to be a spy. Even as a capitalist making hay the Chinese end up with the ideas. Most of the time. Even without trying to recruit him initially.

We have to stop hiring and working with elite Chinese tech folks.