Chipmakers must agree not to expand capacity in China for a decade if they are to receive money from a $39 billion US federal fund designed to build a leading-edge US semiconductor industry, according to new commerce department rules, reports the Financial Times. The department on Tuesday called for applications for funds from the Chips Act passed by Congress last year, as it launched a landmark industrial policy programme designed to counter China.
In announcing the move, commerce secretary Gina Raimondo stressed the department would be implementing safeguards to ensure the programme was not abused.
“Recipients will be required to enter into an agreement restricting their ability to expand semiconductor manufacturing capacity in foreign countries of concern for a period of 10 years after taking the money,” said Raimondo, who did not mention China by name.
