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U.S. Intensifies Efforts to Curb China's Semiconductor Capabilities

The Biden administration considers blacklisting Chinese semiconductor firms and investing in domestic production to reduce reliance on China.

  • The Biden administration is mulling over blacklisting several Chinese semiconductor firms linked to Huawei Technologies, aiming to stifle China's semiconductor industry.
  • Huawei's deployment of a 7-nanometer processor developed by SMIC has raised concerns over potential U.S. export rules violations.
  • The U.S. is bolstering its domestic semiconductor industry with significant investments, including an $8.5 billion grant to Intel for a new plant in Arizona.
  • China's Ministry of Commerce criticizes the U.S. measures as discriminatory and a violation of market laws and international trade rules.
  • The U.S. is also urging allies to implement similar restrictions on chipmaking tool shipments to China, aiming to degrade Chinese chipmaking capabilities.
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