Japan, South Korea, Taiwan and Europe require compliance with China’s export restrictions on semiconductor technology. Through the “chip Alliance”, Biden aims to create a supply chain that does not include Beijing. Example of Huawei’s 5G ban.
Washington (AsiaNews) – The United States wants an alliance between “high-tech democracies” to limit the development of the Chinese microchip industry: an attempt to prevent the development of the Chinese military program, and a new chapter in the “technological war” “Between the two powers.
Washington has demanded that allies such as Japan, South Korea, Taiwan and Europe comply with its restrictions on exports of advanced semiconductor technology to China. On October 7, the US government announced a blanket ban on the sale of microchip manufacturing tools and design software to Chinese entities. It also limits the ability of US citizens to work or do business with Chinese companies.
According to Nikkei Asia, the United States controls 12% of the world semiconductor market, which is used in all electronic systems. Taiwan and South Korea each hold 20%; Japan has 15%.
US tech companies, such as those in Japan, South Korea and Taiwan, have reservations about Washington’s move: they don’t want to lose China’s rich market in a time of global crisis, especially in terms of supplying chip-making machinery. .
Last spring, the United States proposed a “chip alliance” with Japan, South Korea and Taiwan. The intent of the Biden administration is to create an autonomous supply chain in the microchip space with the participation of allies and friendly countries, with the exception of China.
The initiative is yet to be finalized, but Washington wants participants to contribute to efforts to “isolate” China in the microchip space. However, observers note that the latest ban had little impact on China’s military development: the restrictions cover the market for more complex chips, while Beijing’s weapons systems still use less advanced semiconductors.
The Chinese leadership certainly cannot ignore the challenge posed by Washington. Huawei’s financial collapse after the US imposed a ban on its 5G products and other countries followed suit in a warning in Beijing.
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