US Crackdown on Advanced Chips Creates Opportunities for China’s Old Technology

Friday, 23 August 2024, 12:00

US crackdown on advanced chips has created a unique opportunity for China to leverage older technological innovations. As export controls tighten around high-end semiconductors, China is pivoting toward established production methods. This strategic shift may reshape the global semiconductor landscape.
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US Crackdown on Advanced Chips Creates Opportunities for China’s Old Technology

US Export Controls on Advanced Chips

Since 2022, the US has been hyperfocused on restricting Chinese production of high-end semiconductors. The Commerce Department has imposed stifling export controls and allocated tens of billions of dollars in funding to support domestic chip manufacturing.

China’s Response

In response to these restrictions, China is turning to its older technology capabilities, allowing it to maintain production without the latest advancements. This could potentially lead to innovation in more traditional chip designs.

Strategic Implications

  • The US restrictions might inadvertently strengthen China's position in older technologies.
  • This shift suggests an evolution in how both countries may approach semiconductor production.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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