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China deems US chips unsafe amid rising trade tensions
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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.

China Proclaims US Chips Unsafe as Trade Tensions Escalate

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