Posted on 09/07/2022 9:36:43 AM PDT by EBH
US tech companies that receive federal funding will be barred from building "advanced technology" facilities in China for 10 years, the Biden administration has said.
The guidelines were unveiled as part of a $50bn (£43bn) plan aimed at building up the local semiconductor industry.
It comes as business groups have pushed for more government support in an effort to reduce reliance on China.
They are faced with a global microchip shortage which has slowed production.
"We're going to be implementing the guardrails to ensure those who receive CHIPS funds cannot compromise national security... they're not allowed to use this money to invest in China, they can't develop leading-edge technologies in China.... for a period of ten years," according to US Commerce Secretary Gina Raimondo., explaining the US Chips and Science Act.
"Companies who receive the money can only expand their mature node factories in China to serve the Chinese market."
The US and China are locked in a long-running dispute over trade and technology.
(Excerpt) Read more at -bbc-com.cdn.ampproject.org ...
But Taiwan is ok as we will let China take it. wink. wink.
A broken clock is right twice a day.
What??
No, silly. This is haggling. China will be allowed to make US chips as long as soon as the Big Guy gets his 10%.
I see this as the wheels of Government finally finding a nut.
The sentiment against China unfriendly business practices have turned against them on the world stage that it cannot be ignored and that some means against them have to happen.
Trump was right, again.
watch for the exemptions for the “right” people
this just makes the fedgov the gatekeeper
pay the toll
Zero chance China will wait.
One saving grace.
There is only ONE vendor in the world building EUV lithography machines.
ASML and each machine is $200M.
You can’t build fast chips smaller than 14nm without it.
You can build lots of slow chips with very poor yield as Intel and Global Foundry discovered 7 years ago.
What they should ban is guest workers being employed at these-government funded fabs. The semiconductor firms want the handout? Force ‘em to hire American.
First find a way to force universities to limit if not stop the admission of Chinese students into STEM programs like electronics & solid-state physics. Reward programs that graduate more US citizens in these fields then foreigners.
Also severely limit the number and the terms (if not stop it altogether!) Chinese professors being in those university programs. Those that want to stay longer than a year must start applying for citizenship.
The enforcement side of pay-to-play.
I’d be shocked if the president doesn’t reserve the right to authorize waivers... for a price of course.
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