US Propose New Measures to Block Communist China from Accessing Advanced Semiconductor

On March 21st, the U.S. Department of Commerce released proposed rules, aimed at preventing $52 billion in semiconductor manufacturing and research funds used by Communist China and other non-friendly countries. These measures restrict companies that receive U.S. government funding, invest in semiconductor manufacturing in countries of concern such as Communist China and Russia, and restrict these companies’ research or technology licensing work with foreign entities companies of concern. U.S. Secretary of Commerce Gina Raimondo said, “these guardrails will help ensure we stay ahead of adversaries for decades to come.” In addition, the new measures are expected to restrict some companies that do business in mainland China and are expected to receive incentive funding, including TSMC, Samsung and Intel. It will hinder the expansion of these chip companies in the Communist China semiconductor market and make it difficult for Beijing to acquire the ability to develop cutting-edge technology. Last October, the U.S. Department of Commerce issued new export control measures preventing Communist China from obtaining certain semiconductor chips made by American equipment anywhere in the world, significantly delaying the development of military aspects of Beijing’s semiconductor technology.