Cutting Off China’s Access to US Chips? Perfect, We’ll Stop Buying Them.

The chip war continues with no end in sight. According to Reuters, President Biden is considering closing a loophole in export restrictions on chips to China. Although the US has banned the export of AI chips to China, Chinese companies with operations in the US can still purchase them and send them back to China, exploiting the loophole. Sanctions on chip exports to China are expected to increase further, potentially including Chinese companies with overseas operations. The US government has previously intensified restrictions on chip exports to China. Recently, the Office of the Chip Plan of the US Department of Commerce issued final rules for the Chip and Science Act, prohibiting technology companies involved in the act from expanding semiconductor production capacity in countries like China and Russia for ten years. This measure essentially cuts off China’s access to cutting-edge chips from major chip giants participating in the act. The regulations target both China and the chip giants. Companies receiving funding from the chip fund are restricted from engaging in joint research and technology licensing activities in China. The Chip and Science Act, worth $280 billion, provides subsidies to companies involved in the act, with a significant portion allocated for scientific research and the chip fund. TSMC has confirmed the postponement of mass production at its Arizona factory in the US from 2024 to 2025. The construction of the US factory faces risks such as a shortage of skilled labor and difficulties in installing related equipment. The chip war continues to impact global supply chains and highlights the challenges faced by companies involved in chip manufacturing and export. “China Focus“ is a YouTube channel created to provide current events and pop culture headlines from you can get to know a more real China through my video. ｜ #ChineseNews #chips #ChinaFocus Thanks for your watching and subscribing.