The Biden administration is reportedly considering imposing new restrictions on Chinese chip firms with ties to Huawei, according to a report by Bloomberg. These potential sanctions are part of ongoing efforts by the US to limit China’s industry while promoting its own semiconductor manufacturing. Additionally, the administration is planning to grant $8.5 billion to Intel for the construction of chip facilities in the US.
In response to China’s growing chip industry, the US has taken measures to limit China’s access to advanced AI chips from American manufacturers such as Nvidia. This has created tension between the two superpowers, with China now encouraging its EV makers to prioritize local chipmakers over US suppliers. These actions have already impacted US companies, with Nvidia having to ship less powerful chips to China and Apple experiencing a decline in iPhone sales in the country. The Biden administration has not yet set a final deadline on imposing sanctions on Huawei-linked firms, with the decision potentially contingent on the state of US-Chinese relations in the coming months. As of now, US officials, as well as Huawei and its affiliated companies, have not provided comments on the situation.
