The Biden administration announced this week that technology companies that receive funds from the $280 billion CHIPS and Science Act will be barred from building advanced facilities in China for a period of 10 years.
Secretary of Commerce Gina Raimondo announced the rule during a Sep. 6 press conference, framing the rule as an important step for safeguarding national security.
“Companies who receive CHIP[S] funds can’t build leading-edge or advanced technology facilities in China for a period of 10 years,” Raimondo said. “Companies who receive the money can only expand their mature node factories in China to serve the Chinese market.”
“We’re also going to be implementing the guardrails to ensure those who receive CHIPS funds cannot compromise national security. 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.”…