China is making another move in the global chip war by investing $1.9 billion in Chinese chip company Yangtze Memory Technologies, the country’s largest memory chipmaker.
Due to the cash injection, China is further increasing support for the chip industry in the country. The industry is plagued by US trade sanctions, which are causing the demand for chips to drop.
Sanctions slow down military progress
China is developing a major support package to expand its chip industry and become less dependent on foreign countries. This stems from fears that US trade sanctions will slow down the country’s technological and military progress.
In response to all the developments, US President Biden’s administration recently unveiled new rules for exports to China, to prevent foreign companies from selling advanced chips to China and US chip companies from supplying certain equipment to companies blacklisted Chinese.
Blacklist
Yangtze Memory Technologies was previously added to the American blacklist, which means that American companies are no longer allowed to supply even simple technical products without a special license.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
