U.S. will ban U.S. companies from building processors in China for 10 years

U.S. technology companies will not be able to build advanced chip production facilities in China for 10 years. We are talking about firms that receive state funding.

Here's What We Know

U.S. companies facing semiconductor shortages wanted government subsidies to develop local chip manufacturing to reduce reliance on supplies from other countries. Gina Raimondo, the U.S. Secretary of Commerce, said that to protect national security such companies would not be able to build advanced facilities in China for 10 years. But they will be allowed to expand their existing semiconductor factories.

Over the past 30 years, U.S. chip production has declined significantly. The United States now produces only 10% of global semiconductor production. In 1990 the U.S. share was 40%. To change the situation should be the law on chips, which involves investing $ 52 billion in the development of the industry. By the way, the Chinese Embassy in the U.S. has already criticized the law.

Source: BBC