EU extends deal with US to curb China’s legacy chips dominance

5 Apr 2024

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The two will also conduct collaborative research to find alternatives to per- and polyfluoroalkyl substances (PFAS) in chips, also known as ‘forever chemicals’.

Concerned about China’s market dominance in legacy chips, which power everyday technologies from washing machines to cars, the US and EU are extending existing agreements for three years to probe semiconductor subsidies and potential supply chain disruptions.

In a joint statement published today (5 April), the US and EU said they share “concerns” about non-market economic policies and practices that may lead to “distortionary effects” or “excessive dependencies” for legacy chips.

“We intend to extend the two administrative arrangements for a period of three years to enable further coordination and to establish synergies between our support for investments in the semiconductor sector taking place under the EU Chips Act and the US CHIPS Act,” the statement reads.

“Both the EU and the US are committed to continuing to engage closely with industry on the issue. We plan to convene further government-to-government discussions with likeminded countries on this topic in the near future.”

Currently engaged in a chip war with China, the US recently launched an industry survey to assess the use of legacy chips in supply chains that directly or indirectly support its national security and critical infrastructure. The EU also said it is gathering information on the issue.

“We intend to, as appropriate, continue to collect and share non-confidential information and market intelligence about non-market policies and practices, commit to consult each other on planned actions, and may develop joint or cooperative measures to address distortionary effects on the global supply chain for legacy semiconductors.”

The two will also conduct collaborative research – including with the use of advancements in AI – to find suitable alternatives to per- and polyfluoroalkyl substances (PFAS) in chips. Also known as forever chemicals, PFAS do not readily break down and can be detrimental to human health.

“For example, we plan to explore the use of AI capacities and digital twins to accelerate the discovery of suitable materials to replace PFAS in semiconductor manufacturing.”

Earlier today, a new report by Microsoft claimed that China is attempting to influence the upcoming US presidential election with the use of fake social media accounts and AI-generated content.

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Vish Gain is a journalist with Silicon Republic

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