America is systematically trying to cut off China from advanced semiconductors

In a series of strategic moves, the United States is systematically restricting China’s access to advanced semiconductor technologies, aiming to curb the technological advancements of its geopolitical rival. This comprehensive approach includes stringent export controls, alliances with key global players, and bolstering domestic semiconductor production.

The semiconductor stranglehold.

Semiconductors, the tiny chips that power everything from smartphones to sophisticated military systems, are at the heart of modern technological innovation.

As China seeks to ascend the technological ladder, gaining access to the latest and the most sophisticated semiconductor manufacturing processes has become a critical goal for Beijing. However, the U.S. is determined to thwart these ambitions.

This is the last chance America has to cut off China from advance technology.

Export controls and sanctions.

Central to the U.S. strategy are enhanced export controls and sanctions. The Joe Biden administration has tightened restrictions on the sale of semiconductor manufacturing equipment to China.

Companies like Applied Materials, Lam Research, and KLA Corporation, which produce the sophisticated machinery needed to fabricate advanced chips, are now prohibited from selling their most cutting-edge equipment to Chinese firms without special licenses.

Additionally, the United States has expanded its Entity List, adding numerous Chinese tech companies, including the semiconductor giant Semiconductor Manufacturing International Corporation (SMIC).

Being on this list means that these companies cannot buy certain American-made goods and services, severely limiting their ability to progress technologically.

International alliances and cooperation.

The United States has not acted alone. It has strengthened alliances with other leading semiconductor-producing nations to form a united front.

Key partnerships with countries like Japan, South Korea, and the Netherlands, home to critical companies like ASML (the only manufacturer of extreme ultraviolet lithography machines), ensure that China cannot easily source advanced technology from other nations.

In 2020, the U.S. convinced the Dutch government to block the sale of ASML’s most advanced lithography machine to China. This machine is essential for producing the most advanced chips, and without it, Chinese semiconductor companies are significantly hampered in their efforts to catch up with global leaders.

Investing in domestic production.

To reduce reliance on foreign semiconductor manufacturing, the United States is also investing heavily in domestic production capabilities. The CHIPS and Science Act, signed into law in 2022, allocates $52 billion in federal funding to boost domestic semiconductor research, development, and production. This initiative aims to make the U.S. a leader in semiconductor manufacturing once again, reducing vulnerabilities in the supply chain and ensuring a steady supply of chips for national security and economic needs.

The broader geopolitical implications.

The semiconductor struggle between the U.S. and China is a microcosm of the broader geopolitical rivalry. Advanced semiconductor technology is crucial for developing next-generation technologies such as artificial intelligence, 5G communications, and quantum computing. By cutting off China’s access to these technologies, the U.S. aims to maintain its technological edge and ensure that these strategic advancements are under the control of democratic nations.

China, meanwhile, is ramping up its efforts to become self-sufficient in semiconductor technology. The Chinese government has pledged billions of dollars to support its domestic semiconductor industry, but progress has been slow due to the immense complexity and high barriers to entry in the semiconductor field.

Conclusion.

America’s systematic approach to cutting off China from advanced semiconductor technologies underscores the importance of these tiny chips in the modern world.

Through a combination of export controls, international alliances, and significant domestic investments, the U.S. is striving to maintain its technological superiority and limit China’s growth in this critical sector. The outcome of this high-stakes strategy will have profound implications for the future of global technology and geopolitics.