The new Chip and Science Act, signed by US President Joe Biden, will give the industry $280 billion in support. However, the US wants factories in countries like China that pose a “national security threat” to be closed. China, on the other hand, believes the US is violating global trade principles with its new chip law.
China attacks the US over the new chip law
Yesterday, the US took the first step against the semiconductor chip crisis. The country, which is trying to increase technological competition against China, will provide 280 billion dollars of sectoral support, of which 52 billion dollars will be semiconductors. This situation seems to have angered trade associations in China.
The Chinese government has long said that the US chip law will create unfair competition. He stated that the support of 280 billion dollars will not solve the global chip supply and will even break the chain even more. China’s Ministry of Commerce stated that it will take measures to protect China’s rights and interests.
The new law, passed by Biden, aims to increase the US market share in chip manufacturing from 2 percent to 10 percent in the next 10 years. However, the US argues that companies that will receive subsidies should leave China.
“America invented the semiconductor, but today it produces about 10 percent of the world’s supply and none of the most advanced chips. “Instead, we rely on East Asia for 75 percent of global production,” he said.
China International Trade Development Council and China International Chamber of Commerce said that measures should be taken against this decision. Stating that they do not accept the force of the USA against semiconductor companies, the chambers underlined that they will work with international companies.
The US is expected to pay major companies such as Intel, GlobalFoundries and Micron. It is not yet clear whether Samsung and TSMC, which have production lines in China, will benefit from these subsidies.
So what do you think about the chip crisis between the USA and China? You can share your views with us in the comments section.
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