US Chips Act bars American companies in China from building ‘advanced tech’ factories for 10 years
- Recipients of US$52 billion in funding can only expand operations in China that make older and cheaper generation of chips, commerce secretary says
- US$28 billion goes to domestic production of leading-edge logic and memory chips requiring ‘most sophisticated manufacturing available today’
American tech companies that get funding under the US Chips Act will be barred from building “leading-edge” chip factories in China for 10 years, the Biden administration revealed as it shared details of the law aimed at countering China’s semiconductor industry.
“Companies who receive chip funds can’t build leading-edge or advanced technology facilities in China for a period of 10 years,” Raimondo announced at a White House briefing on Tuesday.
“Companies who receive the money can only expand the mature node factories in China to serve the Chinese market,” she said, referring to an older and cheaper generation of chip production still commonly used in computer screens and cars.
“If they take money and then do any of those things, we will call back the money,” Raimondo added.
