- The Biden administration could impose new sanctions on multiple Chinese semiconductor companies linked to Huawei.
- It also plans to allocate $8.5 billion in grants to Intel to build chip facilities in the United States.
- All of these moves are part of the United States’ attempt to promote its own industry while suppressing Chinese industry.
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In the chip war between the world’s superpowers, the United States has struck out at China several more times.
The Biden administration is considering imposing sanctions on several Chinese semiconductor companies linked to Huawei. reported by bloomberg Wednesday, one year after the Chinese tech giant unveiled an advanced chip that will power new mobile phones.
Meanwhile, domestically, the Biden administration was scheduled to announce Wednesday an $8.5 billion grant to Intel to build and expand new chip facilities across the country. new york times report. This is the latest and largest award made by the federal government as part of the 2022 Act to Expand U.S. Production.
These are the latest moves by the United States in its ongoing efforts to rein in China’s chip industry and promote its own semiconductor manufacturing and AI capabilities. In November 2023, the U.S. Department of Commerce will Advanced Computing Chip RegulationsThat makes it difficult for China to import advanced AI chips from U.S. manufacturers, such as Nvidia’s coveted GPUs used to train and enhance AI models.
However, China is also putting pressure on the United States. Last week, Bloomberg reported that Chinese authorities have started asking Chinese EV makers to focus their spending on local semiconductor makers. Of the US ones.
And the tensions are already impacting U.S. companies. Nvidia has had to ship lower-performance replacement chips to China, hurting its revenue there. Apple’s iPhone sales slumped in China in early 2024, in part because the company was losing ground to Huawei.
According to Bloomberg, U.S. authorities have not set a deadline for making a final decision on Huawei-related companies. It may depend on the state of U.S.-China relations in the coming months.
The White House Press Office did not immediately respond to Business Insider’s request for comment. The same goes for Huawei and its alleged agents.