Slapping another set of sanctions on the Tech companies, the US President Joe Biden has barred US Tech companies that are building advanced factories in China from any federal funding for a period of 10 years.
The order in this regard was passed as a part of a $50 billion plan aimed at building and protecting the local American semiconductor industry.
“We're 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 for a period of ten years,” according to US Commerce Secretary Gina Raimondo explaining the US Chips and Science Act.
The US currently produces roughly 10% of the global supply of semiconductors, which are key to everything from cars to mobile phones, down from nearly 40% in 1990. Earlier this month, nvidia and AMD were told by US officials to stop the sale of artificial intelligence chips to China.
“First and foremost, this is about protecting our national security and providing a blueprint for long-term economic prosperity.” Secretary Raimondo added.