{"id":1990582,"date":"2023-08-04T05:32:02","date_gmt":"2023-08-04T09:32:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-semiconductor-war-with-china-slowly-revealing-cracks-in-the-industry\/"},"modified":"2023-08-04T05:33:21","modified_gmt":"2023-08-04T09:33:21","slug":"bidens-semiconductor-war-with-china-slowly-revealing-cracks-in-the-industry","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-semiconductor-war-with-china-slowly-revealing-cracks-in-the-industry\/","title":{"rendered":"Biden&#8217;s chip battle with China exposes industry weaknesses."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbidens-semiconductor-war-with-china-slowly-revealing-cracks-in-the-industry%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1990582&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The White House&#8217;s Trade \u2064War with \u200bChina Takes a Toll on Global Companies<\/h2>\n<p>The ongoing trade war between \u200cthe White \u2063House\u2063 and China regarding semiconductor \u200dchip manufacturing is causing significant challenges for companies \u2062worldwide. As they\u200c navigate through a growing web of industry restrictions, the impact is becoming increasingly evident.<\/p>\n<h3>Escalating Restrictions and Their Consequences<\/h3>\n<p>Over the past year, the United States has implemented controls and license requirements related\u200c to the\u200c sale\u200c of advanced\u2064 chips and chip components to China. In response, China has reciprocated\u2064 by limiting who can purchase the necessary \u200ccomponents for\u200b chip \u200dmanufacturing. While the\u2062 Biden administration justifies \u2063these escalating restrictions on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-white-house-planning-to-refer-brad-raffensperger-to-secret-service-for-investigation-under-the-espionage-act\/\" title=\"Report: White House Planning to Refer Brad Raffensperger to Secret Service for Investigation Under the Espionage Act\">national security grounds<\/a>, \u200dthey may be costing U.S. companies.<\/p>\n<blockquote><p>&#8220;Some of the most innovative and cutting-edge American companies, particularly\u200b in the chip space, are these kind of fabulous guys like Nvidia and others who make a lot of\u200d money in China,&#8221; said Scott Lincicome, director of economics\u200b at the Cato Institute. &#8220;And we might not like that as a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-snubs-gop-leaders-on-new-iran-diplomacy\/\" title=\"Biden Admin Snubs GOP Leaders on New Iran Diplomacy\">foreign policy matter<\/a>, but hurting some\u2063 of the most innovative American \u2062companies is not a great thing when you&#8217;re trying \u200dto win a tech war.&#8221;<\/p><\/blockquote>\n<p>Nvidia, one of the world&#8217;s largest semiconductor manufacturers, has had to make significant \u2062adjustments to its\u200c business\u2063 plans \u2064to continue selling in China. Initially, the company predicted a\u200d $400 million loss in sales due to U.S. regulations in August 2022. However,\u2064 Nvidia quickly adapted \u200cits products \u200dto meet the\u2064 criteria \u2062listed by the\u2062 Commerce\u200d Department&#8217;s restrictions,\u200c only to be ordered by U.S. \u2064officials to stop selling in China altogether.<\/p>\n<p>Other companies, such as Micron, estimated that China&#8217;s ban over national security concerns would cost them a &#8220;<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-public-employees-retirement-system-unloads-6-billion-in-private-equity-stakes-at-a-discount\/\" title=\"California Public Employees' Retirement System Unloads  Billion in Private-Equity Stakes at a Discount\">high single-digit<\/a>&#8221; percentage of their annual revenue.<\/p>\n<p>Not only American companies but also \u2063Chinese companies have felt the pressure. Yangtze Memory Technologies Co., a China-based company placed on the U.S. list of restricted companies, had to lay off about 10% of its workers and slash more than\u200d half of its orders for production tools.<\/p>\n<p>Chinese chip\u2063 manufacturers have been\u200c hit \u2064hard by the trade war as\u200d they\u200c strive \u2063to rebuild their own chip manufacturing capabilities. The Chinese\u200b government has provided financial \u200bsupport to these manufacturers, but they still face challenges \u2064in acquiring the necessary\u200c tools and\u2063 resources due to U.S. restrictions.<\/p>\n<h3>The Origins \u2062of the Trade War<\/h3>\n<p>The trouble for the\u200c tech sector began when President Joe Biden and Commerce \u200dSecretary Gina Raimondo decided to limit Chinese innovation\u2063 through \u2062tariffs and\u2064 export controls. The Commerce Department implemented rules in October 2022, \u200cplacing dozens of Chinese companies on an &#8220;unverified&#8221; list, which restricted their ability to acquire semiconductors or advanced technology from the U.S. \u200bwithout a\u200d license.<\/p>\n<p>Over \u200btime, the &#8220;unverified&#8221; list expanded, including companies like Yangtze. The Commerce Department is expected to \u200dimplement additional restrictions in August, including an executive order from President Biden himself.<\/p>\n<p>U.S. pressure on China \u2062also increased with the implementation of the\u2063 CHIPS \u2063Act, which provided subsidies to encourage the development of domestic chipmakers and suppliers. The law\u2063 also offered incentives for U.S. companies to stop operating in China.<\/p>\n<p>In response, China implemented restrictions on gallium and germanium, \u2062two metals essential for creating high-level chips,\u200d and banned the use of chips from Micron.<\/p>\n<h3>Looking Ahead and Industry\u200b Leaders&#8217; \u200bEfforts<\/h3>\n<p>It may take years before the final results of\u200d the trade war become visible, but industry leaders are already taking\u200d steps to mitigate the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/thanks-to-needless-covid-school-lockdowns-your-kids-lifetime-earning-potential-plummeted\/\" title=\"Thanks To Needless Covid School Lockdowns, Your Kids\u2019 Lifetime Earning Potential Plummeted\">long-term negative effects<\/a>. CEOs from Intel, Nvidia, Qualcomm, and other chipmakers have \u200bmet \u200dwith federal trade leaders to discourage additional curbs on chip \u2063sales to China.<\/p>\n<p>While Chinese restrictions \u200don the U.S.\u2062 have\u2062 not had a significant impact yet, the relief provided by the \u200dCHIPS Act can\u2064 only last for so long. Government subsidies are not a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-semiconductor-war-with-china-slowly-revealing-cracks-in-the-industry\/\" title=\"Biden's chip battle with China exposes industry weaknesses.\">reliable long-term source<\/a> of income, according to Lincicome.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click\u2064 here<\/a> to read more from the Washington Examiner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The White House&#8217;s trade war with China on semiconductor chip manufacturing is impacting global companies as they navigate industry restrictions. In the past year, the US imposed controls and license requirements for selling advanced chips and components to China. China&#8217;s response is awaited.<\/p>\n","protected":false},"author":1,"featured_media":1990583,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-1990582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1990582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1990582"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1990582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1990583"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1990582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1990582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1990582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}