EU and US to Join Forces Against Mature Chips from China

The European Union (EU) intends to assess the potential risks associated with the utilization of Chinese mature semiconductor technology within its industry. This decision aligns with initiatives from the United States, which aim to identify potential threats to national security and the stability of global supply chains.

EU’s Analysis of Chinese Semiconductor Integration

According to a draft document cited by Bloomberg, the EU is contemplating the extent of integration of mature semiconductor technology from China into European industrial networks. This move mirrors the Biden administration’s initiative for risk assessment related to the use of non-advanced yet lifecritical chips, which serve industries from electric vehicles to infrastructure.

Joint Measures Against China

This European Commission’s initiative represents an initial phase towards developing joint measures with the US, potentially including restrictions against China. Legacy semiconductors hold a pivotal role in the global economy. China’s increasing investments in the construction of semiconductor factories are raising concerns on both sides of the Atlantic about the strengthening positions of Chinese companies in this market and the formation of a critical reliance for the West, akin to what has occurred in the solar energy and steel sectors.

The EU and the US will continue to gather and share non-confidential information and market data on non-market policies and practices, agreeing to consult each other on planned actions,” according to the draft document scheduled to be presented at the EU-US Trade and Technology Council (TTC) in Belgium in April.

Forthcoming Discussions and Agreements

Discussions at the upcoming event are expected to focus largely on this topic. Furthermore, the TTC will deliberate on the extension of joint agreements on early warning mechanisms for supply chain disruptions and sharing information about state support for the semiconductor sector.

The countries are projected to reiterate their commitment to principles of risk-based approach to artificial intelligence (AI), the development of criteria for evaluating generative AI models, the harmonization of shared principles and standards for the research and development of 6G wireless communication systems, and collaboration in the standardization of new technologies, including biotechnology.

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