US-China chip war intensifies amid calls for 'small yard, high fence' approach to contain Beijing
US-China chip war
The intensifying chip wars for dominance inthe semiconductor market were marked by a note of caution after the leaders of top US chipmakers told Biden administration to study the impact of restrictions on exports to China and pause before implementing new restrictions.
According to a report in Bloomberg, during meetings in Washington earlier this week, Intel's Pat Gelsinger, Nvidia's Jensen Huang and Qualcomm's Cristiano Amon warned that if US continues to control the exports of chips, it will harm the US dominance in the semiconductor industry.
No commitments were made by the Biden administration, report added.
US-China chip wars: What is happening?
Washington, citing supposed national security threats, has asked chipmakers to curb exports to China. The Biden administration has targeted the chip exports of the ones specifically made for the Chinese market.
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The chip industry in the world's largest economy is thus currently navigating between the increasing tensions between Washington and Beijing.
Calls for 'small yard, high fence' restrictions
US National Security Adviser Jake Sullivan said that he agreed with the semiconductor company's executives that the approach must be a "small yard, high fence". But he added that theeffectiveness of such approachis limited.
He defended Biden administration’s actions saying the measures were targeted and had virtually no impact on US-China trade for most semiconductor trade.
"The vast majority of sales of chips designed by the United States to China has continued unabated," he said at the Aspen Security Forum. "It continues to this day."
Also watch |US-China trade tensions escalating
"We are going to continue to look at very targeted, very specific restrictions on technology with national security and military applications and make judgments rigorously, carefully, methodically — and, yes, in deep consultation with our private sector," he said.
Companies like Qualcomm get more than 60 per cent of its revenue from China, where it supplies components to smartphone makers such as Xiaomi.
For Nvidia, China gives it a fifth of its annual sales.
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