The government is escalating Biden cpu war with China declaring young and pretty severe restrictions in all sectors of the sector that operate in the second economy of the planet, while being subsidized by the US government. On request thwart Beijing’s ambitions in order to make China a leading power in the field of high technologies, but also to ensure the supply of the American economy with the necessary components for its development, Washington thus imposes very narrow and even suffocating restrictions on those manufacturing industries that operate in China. Since yesterday, it has even sent representatives to South Korea, Japan, and Taiwan from a US agency that has claimed responsibility for enforcing the processor law, which now includes new restrictions.

In particular, it prohibits subsidized industries from increasing production by 5% or more in high technology. microchip and 10% for older technologies. It also sets a maximum allowable cap of $100,000 for investment by subsidized industries in China. And, of course, the threat that accompanies these restrictions is the removal of subsidies and guarantees that Washington has provided for industries in this sector, and indeed for a period that reaches 10 years after the provision of appropriate incentives.

The Chinese Foreign Ministry immediately reacted, accusing Washington of protectionism and “blocking” others, and added that Beijing would protect the interests and rights of Chinese industry. A ministry spokesman even stressed that “all this policy of containment will not stop China’s development, but will only strengthen our will to continue its development with our own means and self-sufficiency.”

Under the policy of these restrictions from Washington, the fields of the most important sectors of the sector are very narrow for growth in China. Among them are processor champions Taiwan Semiconductor Manufacturing Co, Samsung Electronics and Intel Corp, all of which operate in China. These industries will have very limited growth potential in the world’s second largest economy, and Beijing’s efforts to develop domestic high technology will be severely hampered. For TSMC in particular, the new restrictions are a major problem preventing Taiwanese industry from expanding its high-tech facility in east China’s Nanjing city. But in October, the company’s chief executive said he had received a one-year clearance from the US government and a temporary exemption from hitherto existing bans on increasing production in China.

Washington is threatening to withdraw subsidies for companies that increase their production in China by more than 5% in the high-tech sector.

For its part, Samsung emphasized that it is in constant contact with the governments of both the US and South Korea and intends to determine its next steps when it carefully examines the data created by the new restrictions. Samsung has a large factory in the central Chinese city of Xi’an where NAND memory chips are made. As for Intel, it has a microchip assembly and testing plant in the city of Chengdu in central China, which is clearly a minor activity compared to other industries in the industry. Finally, China’s memory chip manufacturer Hynix announced that it would closely monitor related announcements and analyze its actions. It should be noted that from now on, those who receive subsidies from the US state will also be prohibited from conducting joint research with an organization from China or another country of concern in Washington, as well as from providing technology. The ban also covers research and collaboration between two or more people, and technology licensing is any agreement to license patents, trade secrets, or know-how that can be shared with another party.

Meanwhile, Washington is expected to expand its blacklist of companies it considers suspicious or dangerous to US national security. It included some of China’s largest companies such as telecommunications giant Huawei Technologies, artificial intelligence giant SenseTime Group, as well as some of China’s largest microprocessor manufacturers such as Yangtze Memory Technologies Co.