China’s top industry associations have issued a coordinated statement, warning that US chips are “no longer safe” due to export controls. The statements come as tensions between the two nations escalate ahead of President-elect Donald Trump’s return to the White House in January.
The Chinese associations advise companies to buy locally produced chips instead of relying on imports from the US. The warnings affect major US chipmakers like Intel, Nvidia, and AMD, which have managed to maintain sales in the Chinese market despite export controls.
In response, the US Semiconductor Industry Association has denied claims that American chips are unreliable or unsafe. The group urges both governments to avoid further escalation and encourages a targeted approach to export controls.
The move is seen as a global trade war, with China banning exports of rare minerals used in military applications and other manufacturing processes. The US National Security Council has vowed to take necessary steps to deter China’s “coercive actions” and diversify supply chains.
China’s internet industry is reportedly feeling the effects of US chip export controls, with companies saying they would be able to continue production due to efforts to localize output. Industry groups have also expressed concerns over the security of the country’s critical information infrastructure.
Source: https://www.reuters.com/technology/chinese-firms-should-diversify-chip-sources-internet-society-china-says-2024-12-03