Biden Stunts Growth in China for Chipmakers Getting US Funds
- Commerce unveils new curbs on firms that take federal money
- Intel, Samsung and TSMC may lose more growth due to guardrails
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The Biden administration unveiled tight restrictions on new operations in China by chipmakers that get federal funds to build in the US, potentially hampering efforts to expand in the world’s largest semiconductor arena.
The $50 billion CHIPS and Science Act will now bar firms that win grants from expanding output by 5% for advanced chips and 10% for older technology. The Commerce Department also outlined other measures including a $100,000 spending cap on investments in advanced capacity in China.