{"id":2042001,"date":"2023-09-22T20:53:01","date_gmt":"2023-09-23T00:53:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-finalizes-rules-preventing-chinas-access-to-52-billion-chips-funding\/"},"modified":"2023-09-22T20:58:44","modified_gmt":"2023-09-23T00:58:44","slug":"us-finalizes-rules-preventing-chinas-access-to-52-billion-chips-funding","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-finalizes-rules-preventing-chinas-access-to-52-billion-chips-funding\/","title":{"rendered":"US blocks China&#8217;s $52B chip funding access with finalized rules."},"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\">20<\/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%2Fus-finalizes-rules-preventing-chinas-access-to-52-billion-chips-funding%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=2042001&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--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<div class=\"my-5\">\n<blockquote>\n<p>      \u200b\u2063     The Department of Commerce announced on Friday the final funding \u2064rules under the \u200c <a href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/4346\/text\" target=\"_blank\" rel=\"noopener\">CHIPS and Science Act<\/a>, preventing China from benefiting from the\u200b $52 billion incentives and clearing the last hurdle \u200dbefore awarding the $39 billion portion for semiconductor \u200cproduction.\n    <\/p><\/blockquote><\/div>\n<p>    \u2062The rules put restrictions on CHIPS \u200cfunds recipients, preventing them from investing in most semiconductor manufacturing in &#8220;foreign countries of concern&#8221; for \u2064ten\u200c years. They are also prohibited from\u200b conducting \u200cjoint \u200dresearch or technology licensing with &#8220;foreign entities of concern&#8221; \u200con technology or products of national security concern. Additionally, recipients cannot use the incentives to\u2063 build,\u200b modify, or improve a chip facility outside the United\u200d States.\n  <\/p>\n<p>    Commerce will enforce these \u200d&#8221;guardrails&#8221; by \u200btaking back the entire federal award in case of violations, according to the Department&#8217;s\u2063 press release.<br \/>\n \u2062\n  <\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related \u2063Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/china\/no-evidence-china-can-make-advanced-chips-at-scale-us-says-5496480?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>No Evidence China Can Make Advanced\u200b Chips &#8216;at Scale,&#8217; US Says<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/22\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/china\/no-evidence-china-can-make-advanced-chips-at-scale-us-says-5496480?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/vivek-ramaswamy-reveals-declaration-of-independence-from-china-5496437?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Vivek Ramaswamy Reveals &#8216;Declaration\u200d of Independence From China&#8217;<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/21\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/vivek-ramaswamy-reveals-declaration-of-independence-from-china-5496437?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"my-5\">\n<blockquote>\n<p>      \u2062     The U.S. definition of &#8220;foreign countries of concern&#8221; <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/42\/19221#a_1\" target=\"_blank\" rel=\"noopener\">includes<\/a> China, Russia, North Korea, Iran, \u200cand any other countries determined by the Department of State. The Commerce secretary may also add \u2064more countries to the list for the purpose\u200d of CHIPS funding. Foreign entities of concern \u200cinclude entities owned or controlled by foreign countries of concern and those\u2064 on the Bureau of \u200dIndustry and Security&#8217;s <a href=\"https:\/\/www.bis.doc.gov\/index.php\/policy-guidance\/lists-of-parties-of-concern\/entity-list\" target=\"_blank\" rel=\"noopener\">entity list<\/a> and the Treasury Department&#8217;s Chinese Military-Industrial\u200d Complex Companies\u200d (<a href=\"https:\/\/ofac.treasury.gov\/consolidated-sanctions-list\/ns-cmic-list\" target=\"_blank\" rel=\"noopener\">NS-CMIC<\/a>) list.<br \/>\n   \u2063\n    <\/p><\/blockquote><\/div>\n<p>    \u2062    &#8220;One of the Biden-Harris Administration&#8217;s top priorities\u2014made possible by the CHIPS and Science \u2062Act\u2014is to \u200cexpand the technological leadership of the U.S. and our allies and partners. These guardrails\u200b will protect our national security\u2063 and\u200d help the United States stay ahead for decades\u200d to come,&#8221; \u2062said Secretary of \u200dCommerce Gina Raimondo \u200cin the\u200c press release.<br \/>\n\u2064\n  <\/p>\n<p>    \u200c    &#8220;CHIPS for\u2063 America is \u200bfundamentally a national security initiative, \u200dand these guardrails will help ensure companies receiving U.S.\u200b Government funds\u2062 do not undermine\u2063 our national security as \u200dwe continue to\u2064 coordinate with our allies and partners to\u200b strengthen global supply chains\u200c and enhance our collective security.&#8221;<br \/>\n\u200b\n  <\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"my-5\">\n<h2>US Chip Production Is Key<\/h2>\n<p>    Still, U.S. chip\u2063 production \u200dis the key, James Lewis, director\u2062 of\u200c the\u2062 Technology and \u200cPublic Policy Program at the Center for Strategic and International Studies think tank, told The Epoch Times.\n  <\/p><\/div>\n<p>    \u200c    &#8220;They&#8217;re intended to keep money from going to China, which was a big congressional\u2062 concern. Probably unnecessary since companies are \u2062increasingly reluctant to invest in China because of \u2062business risk\u2063 but a political\u200d requirement,&#8221;\u2062 Mr. Lewis spoke \u2064of the &#8220;guardrails&#8221; released Friday.\n  <\/p>\n<p>    \u200c  &#8220;The CHIPS Act will be a success \u200cif there are more\u200c fabs\u200c in \u2063the \u200bUS and US chip production has\u200c gone up. So far, there&#8217;s been no progress, but it is early days,&#8221; \u2062he added. &#8220;But the US needs to keep in mind these \u2064are the only goals that\u200b count and\u200d speed up implementation.&#8221;\n  <\/p>\n<p>    &#8220;CHIPS is a good idea, but we&#8217;ll see\u200b if the Administration can pull it off,&#8221; \u2064he \u200bsaid.<br \/>\n \u2062\n  <\/p>\n<p>    Jeff Ferry, chief economist at the Coalition for a Prosperous America (CPA), agrees that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republican-study-committee-democrat-anti-china-bill-riddled-with-woke-climate-change-carveouts\/\" title=\"Republican Study Committee: Democrat Anti-China Bill Riddled with Woke, Climate Change Carveouts\">domestic semiconductor production<\/a> is important and said \u200cthat Commerce&#8217;s latest move\u200c was \u2063&#8221;a step in the right direction but does \u200bnot go far \u2064enough.&#8221; CPA is an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-finalizes-rules-preventing-chinas-access-to-52-billion-chips-funding\/\" title=\"US blocks China's B chip funding access with finalized rules.\">advocacy\u200b organization\u200c representing \u2063exclusively manufacturers<\/a> that have production in the\u2064 United States.\n  <\/p>\n<p>    \u2064  \u200cIn particular, he has problems with \u200cthe definition of &#8220;advanced&#8221; chips.\n  <\/p>\n<p>    \u2062   \u2064 &#8220;The Biden administration, in partnership with\u2064 the chip industry, has defined a very narrow segment of the chip industry as &#8216;advanced,&#8217; and the \u200bother 90% of \u2062the chip industry as &#8216;legacy.&#8217; This is \u200ca largely fictional differentiation in that you can \u200bmake advanced products using the latest\u2062 so-called legacy chips,&#8221; \u200cMr. \u200bFerry told The Epoch Times.\u200c &#8220;Seven, nine, and\u2064 12-nanometer chips can do lots of very advanced work.&#8221;\n  <\/p>\n<div class=\"my-5\">\n<blockquote>\n<p>      The CHIPS funding rules \u2063were finalized weeks \u2064after China&#8217;s Huawei\u200c Technologies Co. <a href=\"https:\/\/www.theepochtimes.com\/us\/us-commerce-department-vows-to-protect-national-security-amid-huawei-chip-breakthrough-5488038\" target=\"_blank\" rel=\"noopener\">launched<\/a> \u200d a new smartphone model using a 7-nanometer\u2064 chip\u2014a milestone \u2062of computing power albeit two \u200dgenerations behind the \u200cmost advanced\u2014on\u2064 Aug. \u206429, during\u200b Ms. \u200dRaimondo&#8217;s\u2064 visit \u2063to China.\n    <\/p><\/blockquote><\/div>\n<p>    \u2062   \u2063Mr. Ferry referred to the \u2062Huawei breakthrough as a\u2062 case for broadening the restrictions on \u200btechnology transfer and equipment sales.\u2063 &#8220;What we need to do is to broaden \u2062those restrictions, make it more difficult\u200b for them, and at the same\u2063 time, \u200bput the \u200caccelerator down on\u2062 domestic research \u200band development \u200dand domestic production,&#8221; he said.<br \/>\n  \u200c\n  <\/p>\n<div class=\"my-5\">\n<h2>Packaging Technology\u200d Included<\/h2>\n<p>    Ms. Dwyer also \u200bconfirmed at the webinar that semiconductor packaging technology is covered under the expansion restrictions.\u2062 Packaging stacks chips\u200b up to increase computing power. For example,\u2064 instead of having a 3-nanometer chip, one can stack 7-nanometer chips together to get\u2063 to a similar level of computing power.<br \/>\n\u2062\n  <\/p><\/div>\n<div class=\"my-5\">\n<p>    \u200d  Ray Yang, a semiconductor industry veteran and a\u200b director at the Industrial \u200cTechnology\u2064 Research Institute (ITRI), an influential think tank in Taiwan, <a href=\"https:\/\/www.theepochtimes.com\/us\/us-commerce-department-vows-to-protect-national-security-amid-huawei-chip-breakthrough-5488038\" target=\"_blank\" rel=\"noopener\">previously\u200c told<\/a> The\u200d Epoch Times \u2063that controlling advanced packaging\u200d technology would be a natural next step for the United\u200d States to\u200d curb China&#8217;s chip ambitions, following sanctions on advanced equipment that would stop Huawei at \u200d7-nanometers.\n  <\/div>\n<p>    \u2064 The \u2064Epoch Times has contacted the Department of Commerce\u200b for comment.\n  <\/p>\n<\/div>\n<p> <\/p>\n<h2> How do activities that pose a risk to\u200c U.S. national\u2064 security or economic interests influence the \u2064designation \u2063of countries under the CHIPS and Science Act?<\/h2>\n<p><span>  Ountries designated \u200cas\u200d such by the Secretary of Commerce.\u2062 This designation is based \u200don an assessment\u200d of the country&#8217;s involvement \u2063in activities that pose a risk to U.S. national security or\u200d economic\u2064 interests.<\/p>\n<\/blockquote><\/div>\n<p>    The CHIPS and\u2063 Science Act, which was signed\u2062 into law earlier this year, aims to boost \u200ddomestic semiconductor production and research in the United States.\u2064 The \u2064$52 billion in\u200c funding provided by the Act will help address\u200b the global chip shortage and strengthen U.S. \u2063competitiveness in\u200c the industry.<\/p>\n<p>    \u200c   The final funding rules\u200b announced by the\u200b Department of Commerce\u200d set\u2063 clear restrictions and \u2062guidelines for recipients\u200c of\u2063 the CHIPS funds. By preventing investments in semiconductor manufacturing in\u2063 &#8220;foreign countries of concern&#8221;\u2063 for ten years, the United \u200dStates aims to protect its semiconductor industry \u2063from potential security risks and ensure its technological advantage.<\/p>\n<p>    \u2062 In addition to restricting investments, recipients \u200cof the funding are also prohibited from engaging \u2062in \u200djoint research or technology licensing with &#8220;foreign entities of concern&#8221; on technology or products that could pose national security\u200d concerns. This further strengthens the protection of sensitive technologies and \u200dprevents potential \u2062leakage or misuse of\u200c intellectual property.<\/p>\n<p>    Furthermore, the incentives provided by the CHIPS Act cannot be used to build, modify, or improve a \u2064chip facility outside the United States. This ensures that\u200d the funding directly \u2062contributes to enhancing domestic semiconductor production capabilities and \u2062helps establish a secure\u200c and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-announces-13-nation-indo-pacific-economic-framework\/\" title=\"Biden Announces 13-Nation Indo-Pacific Economic Framework\">resilient supply chain<\/a> within \u200dthe country.<\/p>\n<p>    To enforce these restrictions, the Department of Commerce will \u200dhave the authority to\u2064 take back the entire\u2064 federal award in case of any violations. This demonstrates \u200cthe seriousness with \u200dwhich the \u2064United\u2064 States views \u200bthe protection of its semiconductor industry and\u2064 the measures it is willing \u2062to take to\u200d safeguard its national security and economic interests.<\/p>\n<p>    It is important to note that the \u2064definition of &#8220;foreign countries of concern&#8221; includes not only China but also Russia, North Korea, Iran, and any other countries designated as such by the \u200bSecretary of Commerce. This underscores the United States&#8217; commitment to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-asks-judge-for-protective-order-in-trump-election-case-after-social-media-post\/\" title=\"DOJ seeks protective order in Trump election case due to social media post.\">addressing potential threats<\/a> from various sources and\u200c maintaining its technological edge.<\/p>\n<p>    The\u200d final funding rules under the\u2062 CHIPS \u2063and\u200b Science \u2063Act mark an important milestone in the United States&#8217; efforts to strengthen \u2062its\u2064 semiconductor industry. By \u200bsetting clear restrictions and guidelines, the \u200dcountry aims to protect \u200bits national security, boost domestic \u2062production capabilities, and maintain its global technological\u200c leadership in \u200cthe semiconductor sector.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-right\" id=\"in_article_cta\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Call \u2063to Action<\/h2>\n<div class=\"mb-5\">\n<p>          \u200c  \u200d   \u200d   The final funding rules \u200bunder the CHIPS and Science \u2062Act highlight the United\u200c States&#8217; commitment to protecting its\u2063 semiconductor industry. By preventing China and other countries of concern from benefiting from the funding\u200d incentives, the United \u2062States \u200baims\u200b to \u2063safeguard its \u200bnational\u200c security and<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Commerce unveiled the final funding rules for the CHIPS and Science Act on Friday. These rules aim to prevent China from accessing the $52 billion incentives. With this announcement, the last obstacle has been cleared before granting the $39 billion portion for semiconductor production. The rules prohibit CHIPS funds recipients from investing in semiconductor manufacturing abroad, including advanced and legacy technologies.<\/p>\n","protected":false},"author":238,"featured_media":2042002,"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":[543],"tags":[],"class_list":["post-2042001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"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\/2042001","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\/238"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2042001"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2042001\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2042002"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2042001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2042001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2042001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}