The Chips War Heats Up

Commentary
First shots were fired last October when the United States passed the CHIPS and Science Act. It aimed directly at Beijing’s ambition to become the world’s preeminent maker of advanced computer chips. The law offers a significant subsidy for semiconductor manufacturers to establish and expand operations domestically. It also limits the ability to export advanced chips and chip-making equipment to China.
Recently, the pressure has notched up. President Joe Biden, White House spokespeople say, is on the verge of issuing an executive order that will ban all American investment in high-end Chinese technology, such as artificial intelligence (AI), quantum computing, 5G, as well as advanced semiconductors. Meanwhile, both Japan and the Netherlands have agreed to join the United States and limit chip exports to China as well as sales of chip-making equipment. These efforts will not entirely thwart Beijing’s ambitions but will make its effort more difficult….