U.S. Chip Sanctions "Put Temporary Checkmate on China"

Biden Administration’s escalation of the chip war with China is expected to at once hamper China’s foundry industry and cost multinational chipmakers billions of dollars in lost sales.

By Alan Patterson, EETimes (October 21, 2022)

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The latest U.S. salvo in the chip war against China will set back its domestic chipmakers by generations, while global suppliers of semiconductors and fab tools will incur billions of dollars in lost sales because of a giant dent in demand out of China, analysts told EE Times.

The administration of U.S. President Joe Biden has strengthened Cold War measures from longer than 40 years ago. In its new rivalry, the U.S. aims to freeze China’s advancement on a new front: chip technology that is critical for economic development and military superiority.

Based on the Cold War-era Wassenaar Arrangement, including more than 40 nations, the latest U.S. regulations ban exports of Nvidia and AMD GPUs destined for supercomputers in China, as well as sales of chipmaking tools and design software.

For now, the U.S. export rules have probably stymied the advancement of China’s chip industry, Brett Simpson, senior analyst at Arete Research, told EE Times.

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