Tensions between the United States and China in the semiconductor sector continue to escalate. Recently, the United States announced new sanctions aimed at restricting the export of semiconductor technologies to China. These measures aim to hinder China's ability to acquire and produce advanced technologies necessary for its military modernization. China reacts violently!
The United States is still sanctioning China!
The new US sanctions include restrictions on the export of fast high-bandwidth memory (HBM) chips, crucial for artificial intelligence algorithms, as well as 24 types of semiconductor manufacturing tools and three software programs. Additionally, 140 Chinese companies have been added to the entity blacklist, further complicating trade with the United States.
However, Chinese semiconductor companies said that they had anticipated these sanctions and had stocked up on necessary equipment before the new restrictions came into force. They claim that these measures will have a limited impact on their current production thanks to these precautions.
China's violent response
In response to these new sanctions, China quickly retaliated by calling for a boycott of American semiconductor manufacturers such as Nvidia, Intel and Qualcomm. Four major Chinese industry organizations have urged their members to avoid sourcing from U.S. suppliers. This response aims to reduce China's dependence on American technologies and encourage cooperation with suppliers in other countries.
Moreover. China has also banned the export of several critical minerals to the United States, such as gallium and germanium, used in the manufacture of semiconductors and military equipment. The ban aims to disrupt U.S. supply chains and exert economic pressure in response to U.S. sanctions.
These developments mark a new escalation in the trade war between the two superpowers, with significant implications for the global semiconductor industry. Businesses in China and the United States will need to navigate an increasingly complex and uncertain environment, seeking to secure their supply chains while complying with new regulations.
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