Chip Wars: China Challenges U.S. Semiconductor Dominance

Chinese industry associations caution against U.S. chips citing safety concerns amid escalated trade tensions. This follows the U.S. curbing exports to Chinese semiconductor firms. The Semiconductor Industry Association disputes these claims, urging narrow export controls. China's move includes restricting rare mineral exports used in various technologies.

In a rare show of coordinated efforts, four of China's leading industry associations have sounded alarms about the safety of purchasing U.S. semiconductor chips, advocating for local procurement. This marks an escalation in economic hostilities between the two superpowers just ahead of U.S. President-elect Donald Trump's return to office.

The warnings followed the third U.S. crackdown on China's semiconductor sector in as many years, impacting 140 companies, including Naura Technology Group. While chipmaking giants like Nvidia, AMD, and Intel have remained in the market despite restrictions, their future hangs in balance amid these new tensions.

Countering these allegations, the U.S. Semiconductor Industry Association labeled the coordinated Chinese claims as misleading. The unfolding scenario raises the stakes in the tech rivalry as Beijing is now restricting exports of essential minerals, signaling a tougher posture against U.S. measures.

(With inputs from agencies.)