U.S. rolls out new chip-related export controls as China makes rapid advances
- In Reports
- 09:02 PM, Sep 06, 2024
- Myind Staff
The Biden administration is implementing new export controls on essential technologies, such as quantum computing and semiconductor products, in response to China’s growing influence in the global semiconductor industry.
Released by the U.S. Department of Commerce on Friday, the new regulations encompass quantum computers and their components, advanced chipmaking equipment, certain metals and metal alloy-related components and software, and high-bandwidth chips, which are crucial for artificial intelligence applications.
The department justified these measures by citing “national security and foreign policy reasons,” noting that the decision followed extensive consultations with international partners. The restrictions apply to global exports but include exemptions for countries that implement comparable controls, such as Japan and the Netherlands have previously done. The Bureau of Industry and Security (BIS) anticipates that additional countries will adopt similar regulations in the future.
“Today’s action ensures our national export controls keep in step with rapidly evolving technologies and are more effective when we work in concert with international partners,” Alan Estevez, undersecretary of the bureau, said in a statement.
“Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security,” he added.
Officials will conduct a 60-day public comment period before finalising the ruling.
Both China and the U.S. aim to lead in quantum computing, viewing it as a potentially transformative technology, alongside semiconductors. Although China is not explicitly mentioned in the documents, the controls align with the Biden administration’s broader strategy to restrict Beijing’s advancements in fields such as artificial intelligence and computing.
The BIS also stated that it is actively working to strengthen alliances to enhance the effectiveness of export controls targeting Russia’s military capabilities, as well as those of its “enablers,” including Belarus and Iran.
In response to heightened restrictions and technology sanctions from Washington, Beijing has intensified its efforts to achieve self-sufficiency, channelling billions into critical technologies to bolster its chip-making industry. A recent analysis by Tokyo-based semiconductor research firm TechanaLye revealed that Chinese-made processor chips are now nearing a level just three years behind the industry leader, Taiwan Semiconductor Manufacturing Co. Ltd.
As the U.S. intensifies its controls, the global industry has displayed some reluctance. China, being the largest semiconductor market worldwide, remains a significant client for many leading semiconductor companies, including those based in the U.S.
On Wednesday, the CEO of Dutch chip equipment giant ASML, which is restricted from supplying its advanced semiconductor equipment to China, reportedly stated that the U.S.-led restrictions have increasingly become “economically motivated.” He also anticipated further push-back. The Dutch government has indicated that it will consider ASML’s economic interests when evaluating potential additional restrictions on semiconductor exports.
Meanwhile, South Korean Trade Minister Cheong Inkyo suggested this week that the U.S. should provide more incentives if it wants Seoul to agree to further export restrictions on Chinese semiconductors. Beijing has consistently argued that the chip restrictions imposed by the U.S. and its allies are anti-competitive and detrimental to the global semiconductor supply chain.
Image source: MSN
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