[Manthink]

The U.S. has barred companies from exporting chips to companies like Huawei. It’s banned recipients of government funding under the CHIPS and Science Act from expanding advanced chip production in China for at least ten years. It’s reportedly stopped companies like Nvidia from shipping chips used in A.I. development to China. It’s blocked Chinese investment in technology in the U.S. And it’s reportedly considering slapping further controls on other Chinese chipmakers, like Semiconductor Manufacturing International Corporation.

The U.S. believes that its economy and national security is threatened if advanced chips end up with the Chinese military and their defense industry. But the belief in export controls rests on two assumptions: that these measures will prevent targeted entities from getting these technologies, and that the cost paid by the U.S. will be acceptable.

Neither of these assumptions may be true. Instead, export controls could be more costly than the U.S. anticipates—and they might not actually stop China and other rivals from getting advanced chips.



https://fortune.com/2022/09/28/chip-expo...esh-kumar/