Photo: economictimes.indiatimes.com
US lawmakers call for broader bans on chipmaking tool sales to China
US lawmakers are pushing for stricter bans on chipmaking equipment sales to China after reports revealed $38 billion in purchases, highlighting regulatory loopholes that benefit Chinese firms.
- In 2022, China spent $38 billion on semiconductor manufacturing equipment, prompting US lawmakers to call for extended restrictions on sales to Chinese companies.
- The current loopholes in allied export regulations allow non-US firms, such as Japan's Tokyo Electron and Netherlands' ASML Holding, to sell to Chinese companies excluded from US suppliers.
- The push for broader bans underscores concerns over China's advancements in artificial intelligence and integrated circuit technology, which threaten US technological supremacy.
Why It Matters
This initiative reflects escalating tensions between the US and China over technological dominance, especially in the semiconductor sector, which is crucial for national security and economic competitiveness.