June 17, 2024

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Businessman |  Bloomberg: US ends expansion of chip companies…

Businessman | Bloomberg: US ends expansion of chip companies…


The US will limit the growth opportunities of chip companies in China, according to Bloomberg News, based on insiders. The Americans have long blocked the supply of high technology to the Asian country to prevent its use for military purposes.


March 21, 2023

Chip companies using government aid to boost the U.S. semiconductor industry will be allowed to expand production in China by just 5 percent for advanced chips under the new guidelines. With the older technology, production could expand by up to 10 percent, U.S. Commerce Department sources say.

The ministry, which distributes the grants, also set a cap of $100,000 for companies to invest in high-end manufacturing capacity in China, according to Bloomberg. That limit is quickly reached by buying chip machines, which can easily cost several million euros.

Recently, the United States, the Netherlands and Japan reached an agreement to further restrict exports of advanced chip machines to China. Veldhoven-based ASML will be able to export fewer versions of its chip machines to the country than before.

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