Chip Bill follow-up: The United States announced a 10-year ban on companies with "advanced technology" from building factories in China
The Biden administration has announced that American technology companies that have received federal funding will be barred from building factories with "advanced technology" in China for 10 years.
The directive is a follow-up to the Chips and Science Act 2022, which was signed into law on August 9. Under the bill, the United States plans to invest more than $50 billion in subsidies for its semiconductor industry.
U.S. business groups are seeking more government support to reduce their dependence on China. They also face a global chip supply crisis.
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Us Commerce Secretary Gina Raimondo said: "We are building fences to ensure that companies that have received chip funding cannot compromise national security." They can't use that money to invest in China for 10 years, they can't develop leading technology in China."
"Companies that have received funds can only build factories in China that use mature processes to serve the local market."
The two countries are facing fierce disputes over trade and technology, including chip products.
On August 9, US President Joe Biden signed the "CHIPS and Science Act 2022" in Washington, this rare high subsidy bill for a single industry, after a year and a half of brewing and gaming, finally took effect.
Amid concerns that the United States is losing its technological edge to China, the bill includes $52.7 billion in subsidies for the chip industry, a 25 percent investment tax credit for domestic semiconductor and equipment manufacturing and other supportive policies, and its provisions include exclusions for the Chinese chip industry.
American companies now produce about 10 percent of the world's semiconductor chips at home, up from 40 percent in 1990. Semiconductor chips are at the heart of manufacturing from cars to mobile phones.
The Chinese embassy in Washington opposed the US chip bill, calling it a revival of "Cold War thinking".
Some American chipmakers are already feeling the effects. Nvidia and AMD have been told they need to stop selling artificial intelligence chips to China.
Dan Ives, an analyst at Wedbush Securities, said Nvidia had been hit hard by the restrictions. He sees the policy as a warning shot at China.
Us chipmaker Nvidia said on September 1 that US officials had asked it to stop exporting two top-of-the-line artificial intelligence chips to China, a move that could cripple Chinese companies' ability to do advanced computing such as image recognition and hamper Nvidia's business in the country.
Image recognition and natural language processing are common in consumer applications such as smartphones that can respond to queries and tag photos. They also have military uses, such as searching satellite images to identify weapons or bases, and filtering digital communications for intelligence-gathering purposes.
The directive is a follow-up to the Chips and Science Act 2022, which was signed into law on August 9. Under the bill, the United States plans to invest more than $50 billion in subsidies for its semiconductor industry.
U.S. business groups are seeking more government support to reduce their dependence on China. They also face a global chip supply crisis.
With Biden's massive stimulus package on the road, America will rise again or accelerate its decline
Samsung Beats TSMC in mass production of three-nanometer chips: The geopolitics behind the semiconductor wars
Us Commerce Secretary Gina Raimondo said: "We are building fences to ensure that companies that have received chip funding cannot compromise national security." They can't use that money to invest in China for 10 years, they can't develop leading technology in China."
"Companies that have received funds can only build factories in China that use mature processes to serve the local market."
The two countries are facing fierce disputes over trade and technology, including chip products.
On August 9, US President Joe Biden signed the "CHIPS and Science Act 2022" in Washington, this rare high subsidy bill for a single industry, after a year and a half of brewing and gaming, finally took effect.
Amid concerns that the United States is losing its technological edge to China, the bill includes $52.7 billion in subsidies for the chip industry, a 25 percent investment tax credit for domestic semiconductor and equipment manufacturing and other supportive policies, and its provisions include exclusions for the Chinese chip industry.
American companies now produce about 10 percent of the world's semiconductor chips at home, up from 40 percent in 1990. Semiconductor chips are at the heart of manufacturing from cars to mobile phones.
The Chinese embassy in Washington opposed the US chip bill, calling it a revival of "Cold War thinking".
Some American chipmakers are already feeling the effects. Nvidia and AMD have been told they need to stop selling artificial intelligence chips to China.
Dan Ives, an analyst at Wedbush Securities, said Nvidia had been hit hard by the restrictions. He sees the policy as a warning shot at China.
Us chipmaker Nvidia said on September 1 that US officials had asked it to stop exporting two top-of-the-line artificial intelligence chips to China, a move that could cripple Chinese companies' ability to do advanced computing such as image recognition and hamper Nvidia's business in the country.
Image recognition and natural language processing are common in consumer applications such as smartphones that can respond to queries and tag photos. They also have military uses, such as searching satellite images to identify weapons or bases, and filtering digital communications for intelligence-gathering purposes.
