National Security: The United States is investigating the importation of Chinese chips by its companies

The United States wants to maintain its lead,” several years » in China in semiconductor design. To achieve this, the country will launch a survey of its companies to see how they source Chinese-made semiconductors.

This survey” will inform U.S. policy to strengthen the semiconductor supply chain, promote a level playing field for traditional chip manufacturing, and reduce national security risks posed by China “, the Ministry of Commerce announced in a press release on Thursday. This was emphasized by Commerce Secretary Gina Raimondo “Government alone cannot create and maintain a strong supply chain, we need industry involvement “.

Be able to take proactive measures

The investigation follows a report released by a US House committee on December 12 that called for “ reset » economic relations that the United States maintains with China. Among the 150 proposals in this report, an increase in tariffs on certain products was prominent.

Over the past few years, we have seen potential signs of China’s troubling practices aimed at increasing their companies’ semiconductor production and making it more difficult for US companies to compete. », Gina Raimondo specifies in the press release.

The Department of Commerce thus explains that it wants to take ” proactive steps to assess the US semiconductor supply chain by collecting data from US companies on their chip supply “, emphasizes the Minister of Trade. The statement said US-based companies account for roughly half of global semiconductor revenue, “ but faces intense competition fueled by increasing subsidies from foreign governments “.

China is not our friend »

In early December, Gina Raimondo also called on elected representatives of Congress, Silicon Valley and allies of the United States to prevent China from accessing semiconductors and high-tech critical to national security. She also mentioned ” the greatest threat we have ever faced” and ran: “China is not our friend. ,” during the annual National Defense Forum in Simi Valley, California.

In early October, Gina Raimondo also revealed a series of new restrictions on the export of the most powerful chips to China, especially those used for the development of artificial intelligence (AI), to prevent their use by Beijing for military purposes. ” I know there are some semiconductor company executives in the public eye who are not too happy because they are losing revenue. But that’s life. Protecting our national security is more important than short-term revenue “, explained the Minister of Trade.

Democracy is good for business. In the long run, it is worth working with us to defend our country’s national security. America leads the world in artificial intelligence and advanced semiconductor design “, she continued. And add: ” It is thanks to our private sector and thanks to our public sector that invests that we are a few years ahead of China. Letting them catch up is out of the question. »

American Nvidia would like to establish a base in Vietnam

American businesses are not sitting idle. In mid-December, the American chip giant Nvidia announced that it wanted to establish a base in Vietnam for the development of its semiconductor industry. Global supply chain disruptions and concerns about US dependence on China for strategic resources are driving investment in Vietnam’s growing semiconductor industry. Vietnam has around 6,000 engineers in the semiconductor industry but aims to have 50,000 by 2030.

US challenges China by signing semiconductor deal with Vietnam

China bans the export of technology related to strategic metals

China announced on Thursday that it is going to stop the export of a number of technologies associated with the extraction of rare earths, this set of 17 elements used in products cutting edge technology. A decision that represents an turning point in the history of world trade because these metals are essential for the development of numerous technologies (electrical batteries, chips, smartphones, LCD screens, the Internet, wind turbines and military equipment, etc.).

Earthquake in global trade: China bans the export of technology related to strategic metals

We remind you that the world’s second largest economy now controls approximately three quarters of the production of these rare earths. In this way, China intends to thwart any development efforts in this sector in other countries and thus take a leading position in this field.

(With AFP)