New guidelines published by the Biden administration regarding the recently announced CHIPS funds include a key restriction on tech firms in the country. This restriction bars them from building "advanced technology" facilities in China for 10 years.
Back in August, Biden signed a law committing $280bn to high tech manufacturing and scientific research, and also included tax breaks for companies that build manufacturing plants for computer chips in the US.
Following other recent restrictions on the export and sale of US chips to China, US companies have been experiencing the impact of this, and this will further strain the relationship between the US and China over trade and technology in general.
In a press briefing, the Commerce Secretary, Gina Raimondo, stated the following:
We’re also going to be implementing the guardrails to ensure those who receive CHIPS funds cannot compromise national security by — they’re not allowed to use this money to invest in China, they can’t develop leading-edge technologies in China, they can’t send latest technology overseas.
Currently, the US produces approximately 10% of the global supply of semiconductors, which are parts used in the majority of electronics used by consumers today, down from a high of nearly 40% in 1990.
Source: BBC News
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