US To Restrict New China Operations Of Federally-Funded Semiconductor Firms - Reports

The US Commerce Department will announce proposed restrictions on Tuesday on new operations in China of semiconductor manufacturers who receive federal funding in the US, Bloomberg reported, citing department officials

WASHINGTON (UrduPoint News / Sputnik - 21st March, 2023) The US Commerce Department will announce proposed restrictions on Tuesday on new operations in China of semiconductor manufacturers who receive federal funding in the US, Bloomberg reported, citing department officials.

Firms that receive grants under the CHIPS and Science Act would be barred from expanding output by 5% for advanced chips and by 10% for older technology. Measures would also include a $100,000 cap on investing in capacity for advanced chips in China, meaning those more sophisticated than 28 nanometers.

These new restrictions, which would be in place for 10 years, target industry leaders such as Taiwan Semiconductor Manufacturing, Samsung Electronics, and Intel, all of which have operations in China.

Federal grant recipients would still be able to upgrade technology at their existing facilities if they secure the necessary export control licenses.

Under the proposed rules, they would be banned from conducting joint research with or licensing technology to foreign entities of concern.

A public consultation will run for 60 days, with the regulations finalized this year.