Free Trial

BBG-US To Restrict Chip Firms Gaining Grants From Working In/With China

US

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.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.