Chinese Chip Industry Strikes Back Against U.S. Curbs: A Battle for Semiconductor Supremacy

Chinese industry associations warn about procuring U.S. chips due to recent curbs, urging reliance on local alternatives. This comes amid rising U.S.-China tensions, with export controls impacting tech giants like Nvidia, AMD, and Intel. The associations emphasize the need for China to evaluate supply chain security and reduce dependency on U.S. technology.

Four major Chinese industry associations have issued warnings advising local companies against purchasing U.S. chips, labeling them as 'no longer safe' in a unified stance against recent Washington-imposed curbs on Chinese chipmakers. This follows escalating trade tensions between the two countries after the U.S. announced restrictive measures on China's semiconductor industry.

On Monday, the U.S. launched its third crackdown in three years, targeting exports to 140 companies, including China's semiconductor sector. Notably, American giants like Nvidia, AMD, and Intel could be affected as China pushes for alternate partnerships, though the companies have yet to comment.

The advisory resonated across China's largest industries, such as telecommunications and digital economy, with associations urging firms to prioritize domestic and diversified sources. Simultaneously, Beijing barred the export of crucial minerals, underlining its commitment to minimizing U.S. dependence and secure critical supply chains.

(With inputs from agencies.)