The Biden administration has decided to tighten export restrictions on chip-making equipment for Chinese manufacturers.
Now, Chinese factories will not be able to receive exports from a good chunk of the world—over 30 countries, including Israel, Taiwan, Singapore, and Malaysia.
Meanwhile, China's Foreign Ministry spokesperson Lin Jian expressed bewilderment, stating that the US seems intent on hitting global trade and all its participants by forcing other countries to suppress China’s semiconductor industry. In response, China has increased chip-making equipment purchases by 14%, totaling nearly $40 billion.
Back in March, the US decided that Advanced Micro Devices (AMD) chips were just too powerful and pretty to be sent to China without special permission. The company tried to argue that their processors for China were not as good as those for other countries. But in the ongoing chip war, there was no sneaking past the restrictions. No one could have thought that chips could become such a hot potato.
