For example, the latest rules mean companies will need to get licenses to ship machinery to Chinese foundries if those facilities are making certain memory chips or logic semiconductors of 16 nanometer, 14 nanometer or below. Meanwhile, other countries could be under pressure to not ship certain pieces of equipment to China. "China's homegrown chip sector will be hobbled by these extensive controls." The nature of the supply chain has formally shifted its goal from outpacing China in the semiconductor industry to actively denying it access to advanced chips," Pranay Kotasthane, chairperson of the high tech geopolitics program at the Takshashila Institution, told CNBC. rules will make that extremely hard, particularly in the area of chips. have ramped up in the past few years, technology, and in particular sensitive areas like chips, have been dragged into the battle.Īrtificial intelligence, quantum computing and semiconductors are all areas China has identified as "frontier" technologies it wants to boost its domestic capabilities in. But they're also seen as key to military applications and advancing artificial intelligence.Īs geopolitical tensions between China and the U.S. They go into everything from smartphones to cars and refrigerators. Semiconductors are some of the most important technology products.
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