The U.S. Department of Commerce is further curtailing the ability of American companies to sell China advanced chips for artificial intelligence. The national security objective is to avoid providing Beijing with sophisticated silicon that could potentially fuel breakthroughs, giving the nation an advantage in what’s been couched as an “AI arms race.” China is a large market for semiconductors, and the move is said to be fueling tension on both sides of the globe. The new restrictions attempt to plug loopholes in rules the Biden administration introduced in October 2022. Continue reading U.S. Tightens Export Regulations for AI Chip Sales to China

The Senate passed a bipartisan bill in a 63-32 vote this week that allocates $250 billion for technology R&D to counter foreign competition, primarily from China. The U.S. Innovation and Competition Act (USICA) intends to boost research investment, build semiconductor manufacturing capacity and focus on AI development. The National Science Foundation (NSF) will also play a more significant role. Senator Maria Cantwell (D-Washington) stated the bill is “about investing in that innovation economy of the future.” It still needs to pass the House. Continue reading Senate Passes $250 Billion Bill to Foster Manufacturing, Tech

President Joe Biden stated that investing in the manufacturing of semiconductors is part of his administration’s effort to improve the nation’s infrastructure, in order to “build the infrastructure of today and not repair the one of yesterday … [as well as] protect our supply chain and revitalize American manufacturing.” A shortage of semiconductors has impacted industries worldwide and hit the automotive industry particularly hard, forcing a slowdown or cessation of production across the U.S. To assess the problem, White House officials met with 20 chief executives from tech and automotive companies this week. Continue reading Biden Plan Aims to Build U.S. Semiconductor Manufacturing

The Semiconductor Industry Association is lobbying for federal funding to the tune of $37 billion to subsidize a new chip factory among other efforts. The trade group’s lobbying effort is aimed at keeping the U.S. ahead of China and other countries that already benefit from government subsidies. Among the SIA’s other proposals are aid for states looking to draw in investments in the semiconductor industry and more funding in research. The coronavirus and growing tensions with China are motivating Congress to act. Continue reading Semiconductor Trade Group Seeks Major Federal Investment

The Trump administration intensified its battle with Huawei Technologies by issuing a new rule that bans Huawei and its global suppliers from using U.S.-made machinery and software to design or produce chips. Companies can apply for an exception to the measure, but the Trump administration stated these requests will likely be denied. Semiconductor Industry Association president and CEO John Neuffer said his group is worried that the rules would “create uncertainty and disruption for the global semiconductor supply chain.” Continue reading New Trade Rule Further Restricts Huawei Access to U.S. Tech

At the Group of 20 meeting in Osaka, Japan, President Trump stated that U.S. products can again be sold to Huawei Technologies, allowing the Chinese tech company to buy the U.S. components it needs to stay afloat. Trump added, however, that his move does not lift the ban on goods related to national security. Much of the U.S. concern about Huawei has centered on claims that its products are security risks, and the Commerce Department has been hesitant to remove Huawei from its blacklist. Today, commerce secretary Wilbur Ross said the U.S. will issue licenses for companies wanting to do business with Huawei as long as there is no threat to national security. Continue reading G20 Summit: President Trump Partially Lifts Ban on Huawei