The US will ban subsidizing semiconductor production in China
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The US Department of Commerce is finalizing rules aimed at preventing the use of subsidies for semiconductor production by China and other countries that pose a threat to US national security. reports Reuters.
After the publication of these rules, the administration of US President Joe Biden will be able to allocate $39 billion in subsidies for semiconductor production. In general, the landmark Chips and Science Act provides for the allocation of $52.7 billion for semiconductor production in the United States, research and workforce development, the agency clarifies.
The provision, first proposed in March, would create “guardrails” by limiting recipients of U.S. funding from expanding semiconductor production in foreign countries such as China and Russia. In addition, they are prohibited from participating in joint research or technology licensing with foreign companies. If funding recipients violate established restrictions, the Department of Commerce may return the allocated funds.
“We must be absolutely vigilant that not one penny of these funds helps China get ahead of us,” Reuters quoted Commerce Secretary Gina Raimondo as saying.
Against the background of the confrontation with China, the United States is trying to win Vietnam over to its side. On September 11, Biden, during a visit to Vietnam, announced a “new stage” in relations between Hanoi and Washington: the countries entered into an agreement on a strategic comprehensive partnership. The parties also entered into agreements in the supply of semiconductors for American industry.
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