The ongoing US-China technology trade war has entered a new phase with Chinese chip industry groups taking an aggressive stance against American semiconductor products.
Latest developments: Chinese semiconductor industry groups have issued warnings about the alleged safety risks of US-made chips, though they have not provided specific evidence to support these claims.
- Four separate Chinese chip industry groups released statements advising Chinese firms and institutions to avoid US chips
- The groups recommend using either domestically produced chips or those from non-US sources
- Chinese authorities have begun removing Intel and AMD chips from government devices and telecommunications networks
US industry response: The Semiconductor Industry Association, representing major US chip manufacturers, has firmly rejected these safety allegations while expressing concern about their potential impact.
- The association, which includes board members from Nvidia, AMD, Qualcomm, Intel, and IBM, called the Chinese claims “simply inaccurate”
- US industry leaders have characterized China’s coordinated procurement limitations as counterproductive
- The dispute highlights growing tensions between the world’s two largest economies in the critical semiconductor sector
Regulatory actions: Both nations have implemented increasingly restrictive measures targeting each other’s technology sectors.
- The US recently expanded its tech export ban, prohibiting AI memory shipments to China
- American regulators have restricted sales to 140 Chinese firms and limited chip-making equipment exports
- China has retaliated by controlling exports of crucial metals like gallium, antimony, and germanium to the US
Supply chain implications: The dispute has significant ramifications for global semiconductor manufacturing and distribution.
- The US has investigated Taiwan Semiconductor Manufacturing Corp (TSMC) and restricted its AI chip shipments to China
- Chinese authorities are calling for supply chain security checks of critical infrastructure
- The US has invested billions in domestic semiconductor manufacturing through grants and loans since 2022
Diplomatic tensions: The technology trade dispute has escalated into a diplomatic confrontation between the two nations.
- Chinese Foreign Ministry spokesperson Lin Jian has expressed “stern protests” against US semiconductor export controls
- China has accused the US of deliberately suppressing its technological progress
- Both nations have previously exchanged accusations regarding the security risks of each other’s technology, including disputes over Micron chips and Huawei
Strategic implications: This latest development in the US-China tech rivalry suggests a deepening divide in global semiconductor supply chains, potentially leading to increased technological nationalism and parallel development paths in the semiconductor industry.
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