(MENAFN) The Biden administration has intensified its efforts to block China from accessing advanced semiconductor technology by proposing new regulations that would limit United States government funding to the Chinese chipmaking industry.
The US Department of Commerce revealed the proposed rules, which aim to ensure that the government's USD52 billion semiconductor fund is used to support national security interests in Washington and its allies. The regulations aim to prevent the exploitation of government incentives in the chip industry by adversarial countries, which are largely considered to be China and Russia. The proposed measures would forbid recipients of government funding from utilizing the money in other countries or investing in chip plants in foreign countries that are regarded as concerning.
Additionally, those who benefit from the funds would be prohibited from engaging in joint research or technology licensing with firms from the aforementioned countries. The new "guardrails" are designed to prevent the exploitation of United States government incentives in the semiconductor industry by countries that are considered to be a threat to the United States and its allies.
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