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U.S. and European Officials Express Concern over China’s Expansion in Legacy Chips

U.S. and European officials are growing concerned about China’s ramping up production of older-generation chips and are discussing new strategies to curb China’s expansion.

U.S. President Joe Biden has introduced broad controls over China’s ability to procure advanced semiconductors for artificial intelligence (AI) models and military applications. But China has responded by pouring billions into old “legacy semiconductor” factories that are not subject to an export ban. These semiconductors remain vital to the entire global economy and are key components in everything from smartphones to electric vehicles to military equipment.

New concerns have surfaced over China’s potential influence, and discussions have arisen to further curb China’s movements, according to people familiar with the matter, citing the private nature of the talks. said on condition of anonymity. The U.S. is wary of China using semiconductors to gain an advantage over its own country, and is prepared to stop it at all costs.

US Commerce Secretary Lemond addressed the issue last week during a panel discussion at the American Enterprise Institute (AEI), a conservative think tank. “China is pouring huge amounts of money into it, which could lead to overcapacity in mature and legacy semiconductors,” he said. was

A Biden administration official said all options are on the table, although there is no set timeframe for taking action and they are still gathering information. A spokesman for the National Security Council (NSC) declined to comment. A spokesman for the European Union’s executive branch, the European Commission, also could not be reached for comment.

Global Chip Plants Under Construction

New factories and major expansions coming online 2022-2026

Source: SEMI World Fab Forecast as of March

news-rsf-original-reference paywall">Original title:US, Europe Are Growing Alarmed by China’s Rush Into Legacy Chips(excerpt)

#China #rushes #production #semiconductors
2023-07-31 14:57:07

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