President Biden is committed to victory over China when it comes to semiconductors. But it’s not a straightforward process.
Already a subscriber?Just before midday on Good Friday, US President Joe Biden stood up in front of a crowd at the InterContinental hotel in New York to tout his administration’s commitment to winning the “chip war” with China.
“The CHIPS Program Office has decided not to move forward at this time with the Notice of Funding Opportunity for the construction, modernisation, or expansion of semiconductor research and development facilities in the United States,” says a published notice buried deep inside one of the Commerce Department’s agency websites.
“This was done for political reasons,” he says. “If you want to make the Biden administration look good and to win over Congress, the CHIPS Act needs to show progress this year if possible. That can’t be done through R&D. This change is because CHIPS production isn’t moving forward quickly enough.” “Right now you have a pot of money, and you say we’re going to give it all to the immediate returns from spending on production,” he says.
Politicisation is an ongoing thorn in the industry’s side. Last week, the Biden administration revised rules aimed at making it even harder for US companies to sell advanced chips and chip-making tools to Chinese companies based on national security grounds. “That has not only set up more obstacles and imposed a heavier compliance burden on Chinese and American companies who want to work together economically and in trade normally, but has also created huge uncertainty for the global semiconductor industry.”
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