On Friday, September 22, the U.S. Department of Commerce issued restrictive regulations prohibiting recipients of funding for semiconductor production from investing in certain 'concerned' foreign countries such as China and Russia. According to Reuters, these regulations also limit recipients of funding and semiconductor producers in terms of participating in joint research or efforts to license technology with the specified foreign entities. These regulations come as the Biden administration has allocated $39 billion in subsidies for semiconductor production, with $52.7 billion designated for semiconductor production and workforce research and development under the 'Chips and Science' Act. Gina Raimondo, the U.S. Secretary of Commerce, stated, 'These stringent regulations are to ensure that not a penny of this funding goes to China so that this country does not surpass the United States in semiconductor production with American investment.' Under the issued regulations, the expansion of materials and semiconductor production capacity for advanced facilities in foreign countries is prohibited for 10 years, and recipients of government funding are not allowed to develop production line capacities that would increase a facility's production capacity by more than 10 percent. Additionally, some semiconductors are classified for national security, which will impose stricter limitations on them. Semiconductors are materials whose conductivity is between that of conductors (often metals) and non-conductors or insulators (such as ceramics). Semiconductors can be compounds like gallium arsenide or pure elements like germanium or silicon. They have extensive applications in electronic devices, including information processing, data transmission, and signal generation and transmission. These elements have also found special significance in industries such as weapons, art, pharmaceuticals, and communications. Increased U.S. pressure to prevent the sale of Dutch 'chip-making machines' to China. The U.S. intends to control China's chip industry with comprehensive export regulations. The request from the Chairman of the House of Representatives Committee to ban technology exports to two Chinese companies. A common ground for Republicans and Democrats in the U.S. midterm elections: opposition to China.
U.S. Commerce Department Bans 'American Investment' for Semiconductor Production in China
The U.S. Commerce Department has banned American investment in semiconductor production in China and Russia to prevent American technology from aiding these nations. This move is part of a broader strategy by the Biden administration to secure the U.S. semiconductor industry amid rising tensions with China. The regulations include strict limitations on funding recipients and their production capabilities.
👥 Key Players
⚡ Actions
📰 What Happened
U.S. bans semiconductor funding to China and Russia to prevent American investment in their production.
- U.S. Department of Commerce announce China, Russia
- U.S. Department of Commerce prohibit foreign countries
- U.S. Department of Commerce limit semiconductor producers
💡 Why It Matters
📚 Background
The U.S. is taking significant steps to prevent adversaries from advancing in semiconductor technology.
📝 Key Evidence
🏷️ Entities Mentioned
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