March 21, 2023 12:42 GMT
BBG-US To Restrict Chip Firms Gaining Grants From Working In/With China
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Bloomberg reporting that "The Biden administration is set to unveil tight restrictions on new operations in China by semiconductor manufacturers that get federal funds to build in the US." Report states that according to Commerce Dep't officials, the CHIPS and Science Act will halt firms that obtain grants from the USD50bn piece of legislation from expanding output by 5% for new tech and 10% for older chips, with a USD100k upper limit on investment on advanced capacity in China.
- The restrictions come as part of White House efforts to provide 'guardrails' that restrict the ability of China to ramp up its development and manufacture of high-tech semiconductors that could allow Beijing to develop advanced AI and supercomputers equivalent to those being developed by the US and its allies.