Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli occupation forces said that "ceasefire in Gaza begins to be re-implemented."
Israeli media: 'Israel' to halt entry of humanitarian aid into Gaza until further notice.
Al Mayadeen correspondent: One woman was killed and several children were injured as a result of Israeli bombing of displaced Gazans' tents in the Mawasi area of ​​Khan Yunis, south of the Gaza Strip.
Al Mayadeen correspondent in Gaza: An Israeli airstrike targeted the eastern areas of Jabalia, north of the Gaza Strip.
Al Mayadeen correspondent in Gaza: An Israeli airstrike targeted Al-Bureij refugee camp in the central Gaza Strip.
Al-Qassam Brigades: Communication has been severed with what our remaining fighters (if any are still alive) in Rafah, which is currently under occupation's control.
Al-Qassam Brigades says continues to abide by ceasefire, no knowledge of developments in Rafah.
Israeli media: Reports of two IOF soldiers killed in military vehicle explosion in Rafah.
Israeli media: Israeli soldier killed, another wounded in explosion in Rafah.
Medical sources in West Bank: Palestinian killed by occupation fire; wounded and left to bleed while ambulance crews were barred from reaching him in Al-Ain refugee camp, west of Nablus.

US tech companies prohibited from building facilities in China

  • By Al Mayadeen English
  • Source: Agencies
  • 7 Sep 2022 19:10
4 Min Read

The requirements come under the US government’s plan to boost up manufacturing of semiconductor chips.

  • x
  • Visitors gather near a booth for chipmaker Intel at the China International Fair for Trade in Services (CIFTIS) in Beijing, Friday, Sept. 2, 2022 (AP Photo/Mark Schiefelbein)
    Visitors gather near a booth for chipmaker Intel at the China International Fair for Trade in Services (CIFTIS) in Beijing, Friday, Sept. 2, 2022 (AP Photo/Mark Schiefelbein)

As part of its strategy to boost the manufacture of semiconductors, the Biden administration has announced today that US tech companies who receive funding awards from the government will not be permitted to build “advanced technology facilities” in China for 10 years.

The approval of the Chips and Science Act (Chips) in August is part of the government's strategy to reduce US companies' reliance on components produced in China.

Applications are set to be received by next February for $39bn in government semiconductor subsidies to build new production facilities in the US. The bill also includes a 25% investment tax credit for chip plants, worth around $24 billion. 

“We’re also going to be implementing the guardrails to ensure those who receive Chips funds cannot compromise national security,” the US commerce secretary, Gina Raimondo, said. “They’re not allowed to use this money to invest in China; they can’t develop leading-edge technologies in China; they can’t send latest technology overseas.”

Read more: Biden signs on $52.7 bln microchip investment bill to 'counter China'
 
Despite the fact that the semiconductor was invented in the United States, the country only produces about 10% of the global supply, according to the White House, with the remaining 75% coming from east Asia. Most chips are manufactured in factories in Taiwan and South Korea.

Global shortages of computer chips, prompted by the coronavirus pandemic and the conflict in Ukraine, have caused production delays on a global scale for technology companies and other manufacturers.

In addition, the industry has gained increased geopolitical prominence as China accused the bill of threatening global supply chains and hampering international trade. 

Related News

US secretly putting trackers in AI chip shipments to China: Reuters

China warns foreign-made chips and software may enable data theft

These slowdowns can also be attributed to the deteriorating relationships between the 2 countries as a result of US House Speaker Nancy Pelosi's visit to Taipei and the disregard of Beijing's repeated warnings. Beijing launched large-scale military exercises in response, disrupting global supply chains.

The EU and Japan also plan to invest and expand in the CHIPS Act. US chip giant Intel recently announced its plans to invest tens of billions of euros in the EU as the bloc's member states want to reduce their reliance on Asia for semiconductors amid an international shortage.

“These funds are intended to help companies maximize the scale of their projects. We’re going to be pushing companies to go bigger and be bolder,” Raimondo said. “We’re going to negotiate these deals one at a time,” she added, saying the companies receiving government funds would need to “prove to us the money is absolutely necessary to make these investments”.

Read more: US officials order ban on exporting AI chips to China

The Chips Act commits a total of $280bn to hi-tech manufacturing and research and is designed to increase the US’s competitiveness with China.

The Chinese Embassy in Washington said Beijing "firmly opposed" the bill as it strikes as a "Cold War mentality."

Due to the global microchip shortage, the US economy lost last year $240 billion, and a war over Taiwan would be even more catastrophic for the US due to its reliance on one single supplier, Taiwan Semiconductor Manufacturing Company (TSMC).

The US crackdown on the sale of technology to China has already begun to have an impact, with the US chip designer Nvidia disclosing last week that it had been told by US officials to stop exporting two top computing chips for artificial intelligence work to China.

  • CHIPS act
  • Microchips
  • semiconductors
  • US
  • US economy
  • Biden
  • Biden's administration

Most Read

Iran strikes secret Israeli-US bunker under Tel Aviv high-rise

Tel Aviv high-rise struck by Iran hid Site 81, secret US-Israeli base

  • Politics
  • 14 Oct 2025
Palestinian journalist Saleh al-Jaafarawi in an undated image in Gaza, occupied Palestine (Social media)

Gaza Palestinian journalist Saleh al-Jafarawi killed by collaborators

  • Politics
  • 12 Oct 2025
drop site

New report details extensive Israeli arson in Gaza after ceasefire

  • Politics
  • 13 Oct 2025
Illustration of fists breaking shackles, representing the liberation of Palestinian detainees from Israeli prisons. (Illustrated by: AL Mayadeen English/Batoul Chamas)

4 prominent Palestinian detainees to be freed: Who are they?

  • Palestine
  • 13 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Iraqi religious leader Sheikh Jawad al-Khalisi on Al Mayadeen Plus, October 18, 2025 (Screengrab)
Politics

Most powerful decision-maker in Iraq is US: Sheikh Al-Khalisi

Flags of Iran, Russia, and China (IRNA)
Politics

Iran, Russia, China confirm: Iran nuclear issue out of UNSC

Member of the Loyalty to the Resistance bloc Ali Fayyad speaks to Al Mayadeen, October 18, 2025 (Screengrab)
Politics

Hezbollah, allies will reject direct talks with 'Israel': MP Fayyad

The bodies of killed Palestinians held by "Israel" during the war are downloaded from Red Cross vehicles after their release, at the Nasser Hospital in Khan Younis, southern Gaza Strip, Oct. 15, 2025. (AP)
Politics

From rubble to graveyards, Gaza continues recovering its martyrs

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS