The U.S. Commerce Department lai👍d out “guardrails” designed to make sure $52 billion in federal incentives to boost U.S. chip manufacturing doesn’t end up benefiting China or other competitor nations. 

With the release of these final rules, chip makers will now have the opportunity to begin receiving funding set aside in the 2022 CHIPS and Science Act, which is designed to promote 澳洲幸运5官方开奖结果体彩网:semiconductor manufacturing in the U.S. and reduce its reliance on technology produced in China. The legislation devotes more than $39 billion in incentives to increase chip-making capabilities in the U.S., while also setting aside $12 billion for research and development funding.

 “CHIPS for America is fundamentally a national security initiative and these guardrails will help ensure companies receiving U.S. government funds do not undermine our national security as we continue to coordinate with our allies and partners to strengthen global supply chains and enhance our collective security,” said 澳洲幸运5官方开奖结果体彩网:Commerce Secretary Gina Raimondo.

The guidelines set standards to prevent f🐻unds from being used by recipients to expand advanced technology facilities in “foreign countries of concern.” It also limits h🍌ow the funds can be used to expand so-called “legacy facilities” that produce older, commonly used chips. The restrictions on the funding remain for 10 years after receipt of the funds. 

Additionally, there are restrictions on joint research and technology licensing efforts with “entities of concern,” which include those on the 澳洲幸运5官方开奖结果体彩网:Treasury Department’s Chinese Military-Industrial Complex Companies list. The rules lay out a list of semiconductors that the government views as critical to national security, setting them🐽 up for tighter restrictions. 

Chips Acts Shows Promise, But☂ Raises꧟ Supply Chain Disruption Fears

The Semiconductor Industry Assoc🗹iation said that although none of the funding from the Chips Ac🗹t has been distributed, “the early returns are promising.”

The industry group released a report showing that, as of June 2023, the legislation has sparked more than 50 new projects related to semiconductor manufacturing, including manufacturing facilities, expanding existing sites, and gearing up more facilities that supply the materials and equipment for chip manufacturing.

The bill allows for chipmakers to work with U.S. allies, including the U.K., Canada, Australia, and New Zealand, nations that are coordinating their export control enforcement regulations with the rules of the Chips Act, according to the Center for Strategic and International Studies (CSIS).

The rules could also impact chip makers in allied nations, especially South Korea’s Samsung and SK Hynix, and the 澳洲幸运5官方开奖结果体彩网:Taiwan Semiꦕconductor Manufaꦐcturing Company (TSM), which could see expansion plans in China dashed due to the rules, according to the CSIS report. It also notes that some industry stakeholders told the Commerce Department that its strict funding proposals could disrupt the current semiconductor 澳洲幸运5官方开奖结果体彩网:supply chain in unintended ways.

“Western firms with chipmaking operations in China appear to be contemplating shutting those operations down, a move that will exacerbate global shortages of semiconductors over the near term,” the report said.