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Beijing decries Washington’s new chip ‘guardrails’

Washington once again has outraged Beijing, this time by announcing new “guardrails” prohibiting any recipients of US government funding that operate in China from

spending more than US$100,000 to expand their chip facilities there, or

boosting such facilities’ production capacity by more than 5%.

They also are forbidden to expand any existing facility’s production capacity by more than 10% unless at least 85% of its output is incorporated into final products that are consumed locally.

The new curbs officially apply to four countries, but it’s basically China that they target as most high-end chipmakers do not have fabs in the remaining three, Russia, Iran and North Korea.

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