2023-07-06 06:11:24 ET
The U.S. has opposed China's latest restrictions on exports of chipmaking metals gallium and germanium, and plans to consult with its allies to address the issue.
In retaliation to U.S. curbs on chip exports, China implemented its own set of export controls on some gallium and germanium products, which will likely lead to further disruption in the global supply chain.
"These actions underscore the need to diversify supply chains," said a spokesperson for the Commerce Department. "The U.S. will engage with our allies and partners to address this and to build resilience in critical supply chains."
But this may only be start. "This is just the beginning of China's countermeasures," Wei Jianguo, former vice-minister of commerce, told state-owned China Daily. "If high-tech restrictions on China become tougher in the future, China's countermeasures will also escalate."
Note that Treasury Secretary Janet Yellen is currently in China to meet senior officials to help defuse tensions with Beijing.
The U.S. is already weighing new restrictions on exports of AI chips and chipmaking equipment to China. It also lobbied its allies the Netherlands and Japan to join in efforts to isolate China amid national security concerns.
Meanwhile, Taiwan Semiconductor Manufacturing ( TSM ) does not expect any direct impact on its production from China's recent export controls. "We will continue to monitor the situation closely," it said.
More on the chip war
- Chip war heats up as U.S. mulls new curbs on exports to China
- China strikes back with export curbs on gallium, germanium
- Yellen visit to China aims to defuse tensions with Beijing
- Semiconductors Winners & Losers At The Start Of H2
- SMH: Investing In The Semiconductor Ecosystem
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U.S. opposes China curbs on chipmaking metal exports