He called on Japan, South Korea, Taiwan and Europe to adhere to restrictions on the export of semiconductor manufacturing technology to China. With the “Chip Alliance” Biden wants to create a supply chain that excludes Beijing. The example of Huawei’s 5G ban.
Washington () – The United States wants to create an alliance between “high-tech democracies” to limit the advance of the Chinese microchip industry. The objective would be to block the development of the Chinese military program and opens a new chapter in the “technological war” between the two powers.
Washington asks allies such as Japan, South Korea, Taiwan and Europe to adhere to its restrictions on the export of advanced technology for the manufacture of semiconductors to China. On October 7, the US government announced sweeping bans on the sale of microchip production tools, as well as the sale of microchip design software, to Chinese entities. It also introduced restrictions for US citizens to be able to work for companies in the sector in China or do business with them.
According to Nikkei Asia reports, the United States controls 12% of the world market for semiconductors, which are used in all electronic systems. Taiwan and South Korea have 20% and Japan has 15%.
American technology companies, such as the Japanese, South Korean and Taiwanese, have shown reservations about Washington’s moves. At a time of global crisis, they do not want to lose the rich Chinese market, especially when it comes to the supply of machinery for the production of chips.
Last spring the US proposed a “Chip Alliance” with Japan, South Korea and Taiwan. The intention of the Biden administration is to create an autonomous supply chain in the microchip sector with the participation of allies and friendly countries, and the exclusion of China.
The initiative has not yet materialized, but Washington hopes that its allies will contribute to efforts to “isolate” China in the field of microchips. However, observers say the recent bans will have little impact on Chinese military development, because the limitations cover the market for the most sophisticated chips while Beijing’s weapons systems still use less advanced semiconductors.
The Chinese government certainly cannot ignore the challenge that Washington has launched. Huawei’s financial collapse following US-imposed bans on its 5G products, later joined by other countries, is a warning to Beijing.
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