The United States has launched its third crackdown on the People’s Republic of China’s (PRC) semiconductor industry in three years, imposing export restrictions on 24 manufacturers and 140 companies.
The latest move specifically targets military applications, but also semiconductor factories and investment companies.
U.S. Secretary of Commerce Gina Raimondo said, “This action is a targeted move by the Biden-Harris Administration to undermine China’s ability to work with allies and partners to indigenize production of advanced technologies that pose risks to China.” This is the culmination of a long-standing approach.” our national security. ”
“Further tightening export controls underscores the Department of Commerce’s central role in implementing America’s broader national security strategy.”
New management for semiconductor manufacturing equipment required to manufacture advanced node integrated circuits, including specific etch, deposition, lithography, ion implantation, annealing, metrology and inspection, cleaning tools, and three types of software tools for development or production will be imposed. Control of semiconductors and high-bandwidth memory.
According to the Bureau of Industry and Security, this measure serves two main purposes. Slowing down China’s development of advanced AI that has the potential to change the future of warfare. And it will hinder the development of China’s unique semiconductor ecosystem.
The United States, long disadvantaged by more heavily subsidized foreign competitors, is on track to triple its semiconductor production capacity by 2032, with the world’s largest growth forecast. be.
Since the inauguration of the Biden-Harris Administration, which introduced significant restrictions two years ago, semiconductor and electronics companies have announced more than $400 billion in private investment, much of it facilitated by public investment under the CHIPS & Science Act. are.
All eyes are now on the new Republican administration. Semiconductors are an important field located at the intersection of national security and economic policy.
During President Trump’s infamous interview with Joe Rogan during his October campaign, he said the law was “very bad” because it subsidized “rich corporations.”
But the consensus seems to be that the bulk of the $53 billion bill will remain in place, especially since the states that would receive factories supported by the bill, including Ohio, Texas, and Arizona, all voted for Trump. is.
However, some application guidelines may change, such as the use of 100% renewable energy. And it’s unclear whether deals with major Asian chipmakers like TSMC and Samsung, which continue to produce 95% of all chips, will fit comfortably with President Trump’s tariffs and domestic-first policies.
A comprehensive tariff policy would raise chip prices across the global supply chain, and the United States would need to import most of the components needed to make chips anyway.
