US seeks to prevent China from benefiting from $52 billion chips funding

The US Commerce Department on Tuesday released proposed rules to prevent $52 billion in semiconductor manufacturing and research funding from being used by China and other countries deemed US adversaries.

The proposal limits recipients of US funding from investing in the expansion of semiconductor manufacturing in foreign countries of concern like China and Russia and limits recipients of incentive funds from engaging in joint research or technology licensing efforts with a foreign entity of concern. It also classifies some semiconductors as critical to national security – defining these chips as not considered to be a legacy chip and therefore subject to tighter restrictions.

This measure covers chips "including current-generation and mature-node chips used for quantum computing, in radiation-intensive environments, and for other specialized military capabilities."