Tuesday, August 2, 2022

28nm chip bill to TSMC . stops going to China to increase production of advanced chips below

US Congress Passes $52 BillionWaferThe bill contains an important provision to boost domestic semiconductor production: companies receiving subsidies must promise not to increase production of advanced chips in China, or they may have to refund the entire subsidy.

The proviso is bound to escalate tensions between Washington and Beijing. Affected include Intel and Intel which have set up factories in ChinaTSMC, TSMC will be unable to significantly upgrade or expand its existing facilities in China, which threatens to lose some of its growth opportunities in the world’s largest semiconductor market.

Specifically, the bill requires companies that operate in the U.S. for a decade not to significantly increase production of chips higher than 28nm in China. receive federal subsidies from 28nm chips are several generations behind the most advanced semiconductor chips today, but are still used in cars and smartphones. The restriction applies to both logic and memory chips.

Exceptions can be made if chipmakers accelerate production of 28nm-plus or older generation semiconductors to supply China or other countries of interest. Companies that violate an injunction or fail to correct the violations may be required to refund federal grants in full.

white HouseThe bill, which is expected to be signed soon, has already expressed support for the measure.

According to Bloomberg, Intel is lobbying hard for the US not to impose restrictions on investment in the Chinese chip industry. In late 2021, the US chip maker wanted to increase chip production in China to ease the global chip shortage, but the White House discouraged the plan.

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