US–China Strategic Rivalry Escalates Over Chips, Foreign Businesses Caution Investing in China
The United States has ramped up efforts to deny China access to advanced semiconductors and chipmaking technologies, thus, escalating the U.S.–China strategic competition.
Following the passage of the U.S. CHIPS Act, on Sept. 6, the U.S. Department of Commerce released its “Strategy for the CHIPS for America Fund” (pdf), a $50 billion investment to catalyze long-term growth in the domestic semiconductor industry in support of the U.S. national and economic security.
In the White House press briefing on Sept. 6, U.S. Secretary of Commence Gina Raimondo highlighted that technology companies that receive funds from the CHIPS program are not allowed to build leading-edge or advanced technology facilities in China for ten years. These “guardrails” further limit China from obtaining cutting-edge technologies from the chipmakers….