Today: Monday, 6 February 2023 year

US will ban state-funded tech giants from expanding production in China

US will ban state-funded tech giants from expanding production in China

In the United States, the so-called Chip and Science Act (CHIP-plus) was passed, which should stimulate the production of semiconductors in the state. Thus, the United States banned the tech giants, funded by the American state program, from expanding production in China.

It is noted that the new measure will affect the production of microchips smaller than 28 nanometers, that is, the most advanced technologies. According to the agency, companies that receive federal funding will not be able to expand production for 10 years. Corporations that violate the restrictions will have to repay the full amount of federal subsidies.


It is emphasized that most of the grant will go to such large manufacturers as Intel, Taiwan Semiconductor Manufacturing (TSMC) and Samsung. These corporations are currently building new chip manufacturing facilities in the United States. It is reported that the decision of Congress has already supported the White House, which will soon sign the law.

Among the applicants for the grant, only TSMC produces next-generation chips in China. The company manufactures 28nm and higher-end 16nm chips in the city of Nanjing in southern China. Once the law comes into effect, TSMC will not be able to modernize or expand its existing manufacturing facilities in Asia.


Earlier, Mark Liu, chairman of Taiwan’s semiconductor manufacturing company TSMC, urged China to “think twice” over the threat of war. In his opinion, the Chinese authorities should take into account the possible negative consequences for the global economy that may follow Beijing’s decision to play a scenario of force against Taiwan.