The US is determined to dominate semiconductors and not allow China to catch up.
- New proposed rules restrict US investment in key sectors
- Rules ban certain investments in design, automation, fabrication and advanced packaging tools
- Quantum computers and AI also targeted
- Proposes notification requirements for all other investments in Chinese AI system development
The US is going to use every tool at its disposal to prevent anyone else from getting in the chips and AI game. But remember, the US outlawed Huawei, had the founder’s daughter arrested and banned all technology in its phones. Yet within a couple years, the company replaced more than 13,000 parts and redesigned 4000 circuit boards to overcome US sanctions, something The Economist wrote about.
It’s tough to bet against Chinese manufacturing and surely Beijing will be putting all its weight behind catching up.
The question is: Would they go all the way to Taiwan to get ahead?
This article was written by Adam Button at www.forexlive.com.
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