Proposed China investment curb by US sparks debate among chipmakers

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WASHINGTON : Chipmakers are divided over how aggressively to oppose a legislative proposal that would give the U.S. government sweeping new powers to block billions in U.S. investment into China, according to documents seen by Reuters.The measure is part of the House version of a bill that would also gra

WASHINGTON : Chipmakers are divided over how aggressively to oppose a legislative proposal that would give the U.S. government sweeping new powers to block billions in U.S. investment into China, according to documents seen by Reuters.

"It would look hypocritical for companies to be begging for money, but refusing to allow government to have a say on whether they build new fabs in China," said one executive at a chipmaking firm. At a White House event in January to announce plans to build a $20 billion chip plant in Ohio, Intel Corp Chief Executive Pat Gelsinger said without government funding"we're still going to start the Ohio site. It's just not going to happen as fast and it's not going to grow as big as quickly."

Reuters obtained an email from the Semiconductor Industry Association , which has been mum on the provision, to its members last week seeking comment on a statement of principles describing the measure as"too broad," and urging a separate legislative process for it. However, Politico reported that the Treasury Department was working to weaken momentum in Congress for the measure, pushing lawmakers to approve a modest fact-finding pilot program instead of new regulatory powers.

 

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