US Investigates China-Made Chip Amid Escalating Technology Tension

• Raven Ruma
• . September 9, 2023
• . Update: September 9, 2023 5:56 pm
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The US government has opened a formal inquiry into a cutting-edge Chinese-made chip found within Huawei Technologies’ newest smartphone, the Mate 60 Pro, in a step that further exacerbates technological tensions between the United States and China. This development highlights the ongoing competition between the two world superpowers for technological supremacy and geopolitical sway.

The processor in question, a 7-nanometer chip, was made by China’s Semiconductor Manufacturing International (SMIC), a firm that, like Huawei, has been placed on the US’s “blacklist” and is not permitted to use American technology. The US Commerce Department-led probe seeks to learn more about the chip and its capabilities.

The finding of this chip built in China has rekindled a discussion in Washington about the efficacy of restrictions put in place against Chinese tech companies to limit their expansion and influence. China has also taken action in response, broadening its ban on iPhone usage in state-owned businesses and organizations supported by the government. This action puts additional strain on the already tense relations between the US and China and could jeopardize Apple’s significant market share there.

This investigation has important geopolitical ramifications. Because of worries that China’s developing tech sector could provide it with a military advantage, the US has been working to slow down China’s technical gains. China, on the other hand, has been actively attempting to lessen its reliance on American technology and increase the capabilities of its domestic technology.

The recent trip to China by US Commerce Secretary Gina Raimondo and the online launch of the Huawei Mate 60 Pro presented the Biden administration with a diplomatic problem. The discussion surrounding this development makes it unclear if the US’s current technology controls on China are working and whether additional steps are necessary.

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Following news of the US probe, the stock prices of companies associated with the Chinese semiconductor industry increased by up to 20%. This would indicate market optimism regarding anticipated increases in state assistance for China’s semiconductor industry, especially in sectors like lithography equipment, a crucial part of chip fabrication.

China has responded forcefully. Mao Ning, a spokesman for the foreign ministry, emphasised that China rejects the politicking of trade and technological issues and vowed that sanctions would not impede China’s development but would instead increase its commitment to independence and technological innovation.

This examination of the Chinese-made chip found in Huawei’s Mate 60 Pro smartphone is a reflection of the larger competition between the US and China for technical dominance. It is still to be seen how this probe will affect the current technological competition and whether it will result in additional steps being taken by either party. The world is closely watching this fight as the US works to maintain its technological lead while China aims for self-sufficiency because the results will have a significant impact on geopolitics and global technology.