China lashes out at US over chip attack: ‘unfair competition’

Signed by US President Joe Biden New CHIP Act, which will allocate $52 billion to increase production of computer chips in the United States. According to Biden, this is necessary to become less dependent on Asian chip manufacturers and to stay ahead of China.

China’s chip industry trade association CSIA, led by Beijing, said at a press conference Harsh criticism In the American CHIPS Act. According to CSIA Director Yu Xiekang, this is mainly aimed at helping competitors of Chinese companies. “The law contains discriminatory clauses that create an unfair playing field against the fair trade principles of the World Trade Organization.” Yu says.

‘Chaos in Chains’

The law says that chip companies will only receive subsidies for the construction of their U.S. factories unless they further expand chip production in China. The CSIA also warns that the US law could lead to “confusion in global supply chains”. 744 Chinese manufacturers are members of CSIA.

Obstacles

Even the Chinese government is giving Many tens of billions Subsidies to increase chip production at home, including large manufacturers such as SMIC and Yangtze. The Chinese chip industry’s turnover increased by 18 percent last year and is expected to increase by 15 percent this year.

China is still a small participant in chip production, although the country is making progress, for example in the production of memory chips. The U.S. has for years pursued a policy of curbing China’s chip ambitions, including various sanctions.

Recently the US government has recently exercised Press Netherlands Weldon should ban chip machine maker ASML from selling certain technologies to Chinese companies. ASML is the world’s leading manufacturer of chips making machines.

Belongs to Asia

US chip companies account for nearly half of global chip sales. While only 12 percent of global chip production takes place in factories in the United States, most is produced in Asia, particularly South Korea and Taiwan. Taiwan’s TSMC is currently the world’s largest chip maker, but the company could be hampered by rising tensions between China and Taiwan.

Most brands depend heavily on China for the assembly of gadgets, although companies like Apple are increasingly moving their operations to countries like Vietnam and India.