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World News | China Finds Microchip Takeover Difficult Due to U.S. Barriers: Report

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Beijing [China], Dec. 22 (ANI): China has been relentless in acquiring high-end microchips as the country imports semiconductors worth more than $300 billion a year. However, according to a report by the Indo-Pacific Strategic Communications Center (IPCSC), the country has found it difficult to obtain microchips amid barriers imposed by the United States.

The report also noted that because of these constraints, “China is finding it difficult to train AI systems and power advanced applications in the military and surveillance domains.”

Read also | Arctic storms will hit the UK and US by Christmas 2022, with forecasters warning of heavy snow and freezing temperatures.

The U.S. government imposed a series of export controls on China in October, including measures to prevent Beijing from buying semiconductor chips used in U.S. equipment from anywhere in the world.

Since then, even Europe and its allies have worked to ensure that Beijing does not source high-end microchips from anywhere in the world.

Read also | Australia is developing an underwater surveillance drone called the Ghost Shark to counter China (see photo).

As a result, Chinese company Si Microelectronics was blocked by Germany in November from buying chipmaker Elmos. The country has also blocked Chinese investment in Bavaria-based ERS Electronic.

That same month, the British government banned Chinese company Wingtech from acquiring Nexperia, the country’s largest microchip factory.

“In 2021, South Korea exported about US$76.8 billion to China, accounting for 60% of its total microchip exports. But after a year of regular semiconductor business with Beijing, Seoul faces siding with the US, according to the South China Morning Post. Pressure from the China-led coalition to prevent China from getting high-quality chips. However, South Korean semiconductor makers Samsung and SK Hynix, which have factories in China, have been exempted from U.S. export restrictions for up to a year,” the IPCSC reported.

The IPCSC report also said that China has spent billions of dollars building a domestic semiconductor industry over the past 30 years. However, Chinese semiconductor companies account for only a small part of the international market, and these companies do not produce high-end chip technology.

Recently, Geopolitica.Info reported that Germany’s block on the sale of two semiconductor factories to Chinese companies shows that it “will not allow China to annex its companies of strategic and critical importance.”

Berlin’s decision came despite German Chancellor Olaf Scholz’s visit to China in November amid criticism from German and EU lawmakers.

Olaf Scholz is visiting China as the two countries celebrate the 50th anniversary of diplomatic relations to strengthen bilateral economic cooperation between the two countries. Despite Schulz’s visit, Germany has blocked the sale of two semiconductor factories to Chinese companies, citing security threats. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)



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