January 18, 2023
2 mins read

US, China lock horns over capturing semiconductor chip market

Against this, the US in October last year declared rules for total export controls over the chips…reports Asian Lite News

Semiconductor chips have gained huge importance in the global economy. The United States, the leading chip manufacturer and China which is desperately trying to conquer the chip market, are trying to overtake each other although the US seems to have an advantage, reported Inside Over.

The semiconductor chip market which is currently 500 billion dollars (USD) is expected to double by 2030. So whoever controls or dominates the semiconductor market’s supply chain will be a future superpower. The report further states that China wants to own the technology to make chips which is still a US domain. That is why the US trying to control this technology flow to China, according to the report by Federico Giuliani for Inside Over. The flow of semiconductor chip technology to China will ultimately be used by China for military strength, Artificial Intelligence (AI) and Super Computers. Giuliani’s report from Inside Over further says that China has been exponentially investing to increase its production capacity of these microchips and gain technology for production.

Against this, the US in October last year declared rules for total export controls over the chips. This made it impossible to sell chips or chip-making equipment and software containing US technology to China. It also prohibits American citizens and permanent residents from supporting Chinese companies that produce or develop these semiconductor chips, the report said.

Prior to this, the US Department of Commerce, on August 9, 2022 introduced the USD 50 billion CHIPS and Science Act 2022 to strengthen the domestic semiconductor industry, as a part of USD 280 billion capital for research and advanced technological manufacturing.

Giuliani’s report further said that following restrictions by the US, Apple revoked its deal of buying Semiconductor chips from China’s Yangtze Memory Corp (YMTC). Further, the US is also seeking support from its allies to stop China’s market capture. In December 2022 Washington discussed with Japan and the Netherlands how to stop the export of chip-related equipment to China, according to the Inside Over report.

A Dutch company Advanced Semiconductor Materials Lithography (ASML) has a monopoly on key advanced chip-making tools. The US has been working on preventing ASML from exporting chip-making devices to China. The report further claims that it will take China a decade to reach ASML’s expertise in the field.

China in this scenario does not have many options to deal with the US’ restrictions in the semiconductor chip market, because if it decides to revoke its goods and services from the international market then the move will backfire in an already struggling Chinese economy. (ANI)

ALSO READ-Samsung gears up for AI chip boom

Previous Story

IMF sees light at the end of the tunnel

Next Story

US legislators meet top CEOs in Davos

Latest from -Top News

Dengue Scare Hits Lankan Schools

Dengue and Chikungunya cases are on the rise in Sri Lanka….reports Asian Lite News Sri Lanka’s Ministry of Education has issued instructions to prevent the spread of dengue and Chikungunya in schools

Modi’s G7 Mission: Fix What Khalistan Broke

Modi’s acceptance of the G7 invitation, and his remarks about engaging Canada “with renewed vigour,” reflect India’s readiness to move past the impasse—if Canada does its part….writes Parminder Singh Sodhi As Prime

Chinese Arms: All Show, No Go?

Mounting evidence indicates that systemic corruption and persistent quality issues within China’s defence industry are eroding the reliability and global credibility of its military exports…writes Rishan Sen For over a decade, China

Pahalgam: EU’s Moral Fog on Pak Terror

By treating the victim of a terror attack and the alleged sponsor of that attack as equal parties in a dispute, the EU sends a troubling message: that geopolitical balance matters more

Oslo Backs Delhi on Kashmir

The Norway Minister conveyed that there is a strong public sentiment in Norway in favour of India, with many citizens expressing a desire to see Prime Minister Modi visit their country….reports Asian
Go toTop

Don't Miss

Talks between Xi, Putin ‘very successful’: Chinese minister

Putin, who is on a visit to China, attended Friday’s

UK High Court allows Uyghur forced labour case to proceed

Rights groups also argued that a 19th-century law prohibiting the