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
Al Mayadeen's correspondent in Gaza: Four fetuses and three premature babies died at Nasser Medical Complex due to malnutrition
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.
Sirens sound in large areas of occupied Palestine after a missile launch from Yemen was detected

New restrictions introduced on CHIPS-funded firms operating overseas

  • By Al Mayadeen English
  • Source: Agencies
  • 21 Mar 2023 20:31
3 Min Read

A $100,000 cap would be imposed on semiconductor manufacturers investing in furthering the capacities of advanced chips.

  • x
  • US Proposes to Restrict New Foreign Operations of Federally-Funded Sem
    Seal of the Department of Commerce, photographed on March 7, 2017 (Reuters)

The US Department of Commerce introduced on Tuesday the proposal of new guardrails that would prohibit federally-funded chip makers from expanding output by 5% for advanced chips and by 10% for older technology overseas.

"The US Department of Commerce today released a Notice of Proposed Rulemaking for the guardrails included in the CHIPS Incentives Program to advance America’s technological and national security," a statement published on the chips.gov reads.

"The national security guardrails are intended to ensure technology and innovation funded by the CHIPS and Science Act is not used for malign purposes by adversarial countries against the United States or its allies and partners," it added.

According to the statement, the new guardrail would prohibit "significant transactions involving the material expansion of semiconductor manufacturing capacity for leading-edge and advanced facilities in foreign countries of concern for 10 years from the date of award to stop recipients from constructing new or expanding existing leading-edge and advanced technology facilities in those countries."

"Today’s proposed rule defines significant transactions based on a monetary level of $100,000 and defines material expansion as increasing a facility's production capacity by five percent," it added.

In other words, firms that expand their output by 5% for advanced chips or by 10% for older technologies will have their awards retracted. 

It would also impose a $100,000 cap on semiconductor manufacturers investing in furthering the capacities of advanced chips.

Read more: US has no intentions to trigger subsidy race with allies: US official

Related News

Alibaba creates new AI chip to challenge Nvidia

US secures 10% ownership in Intel as Trump prods new industrial policy

The new guardrails, which have a life expectancy of 10 years, are designed to keep a close watch over leading semiconductor manufacturers such as Taiwan Semiconductor Manufacturing, Samsung Electronics, and Intel, all of which have operations in China.

Grant recipients would still have the capacity to upgrade technology at their existing facilities if they secure the required export control licenses.

They will however be barred from conducting "joint research or technology licensing efforts with a foreign entity of concern that relates to a technology or product that raises national security concerns," the statement says.

A public consultation will run for 60 days, the statement adds, noting that industry, partners and allies, and interested parties will engage in submitting comments.

The final rule is scheduled to be published later this year. 

CHIPS is fundamentally a national security initiative.

That’s why the law included guardrails to protect our national security.

Today, we’re building on them to ensure malign actors don’t have access to cutting-edge technology that can be used against America and our allies. pic.twitter.com/olzJK4Nv0I

— Secretary Gina Raimondo (@SecRaimondo) March 21, 2023

In October 2022, the US Department of Commerce introduced sanctions on China, putting hurdles in Beijing's way to buy or develop advanced semiconductors. 

China responded by filing a case with the World Trade Organization (WTO), hitting back at US export sanctions on microchips, further fueling the tech war between the two countries.

Earlier this month, China accused Biden's administration of ramping up tensions toward Beijing following targeted unilateral sanctions against Chinese companies, by adopting restrictions to limit the Asian giant's access to some technologies and pressuring other countries to do so.

Read more: S.Korea to create largest semiconductor cluster: President office

  • Chips industry
  • US Department of Commerce
  • Microchips
  • semiconductors
  • CHIPS act

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

American far-right activist Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Australia warned of deadly climate risks in landmark report
Environment

Millions at risk from rising seas, extreme heat in Australia: Report

DPRK leader Kim Jong Un inspects a new weapons factory in undisclosed location, Democratic People's Republic of Korea, August 31, 2025 (AP)
Politics

DPRK defies US, says nuclear state status 'permanently enshrined'

Soldier F faces trial over bloody Sunday killings after 53 years
Miscellaneous

British Soldier F faces trial over Bloody Sunday killings after 53 yrs

Pro-Palestinian protesters demonstrate at the University of Sydney to protest the Israel Hamas war, Wednesday, April 24, 2024 (AP)
Politics

Protest outside ABC decries media silence on Gaza journalist killings

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