The chip conflict between the USA and China is heating up: $ 27 billion fund and blacklist preparations

The chip conflict between the USA and China is heating up: $ 27 billion fund and blacklist preparations

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The struggle for technological superiority between the USA and China, the two major economic powers of the world, is increasing.

Due to their economic and geopolitical importance, both countries are fighting a great struggle for superiority over each other in many areas such as cyber security, artificial intelligence, semiconductors, chip and digital infrastructure. Both the USA and China continue this struggle in the global arena through their own technological companies and investments.

The USA perceives China’s reaching a significant level in global chip production as a threat and wants to prevent this. In this context, the Biden administration announced that it is preparing to blacklist chip manufacturers affiliated with Huawei in the ongoing evaluation of national security measures.

It is stated that China is preparing a 27 billion dollar fund, which is stated to be the largest chip fund to date, in order to counter the restrictions imposed on chips by the USA.

The Chinese government is banning Intel and AMD chips in all government institutions. China, which is trying to localize all its systems, will remove US Intel and AMD processors from the systems in government institutions.

Beijing, which plans to ban Microsoft and some foreign database products, aims to use the products of 18 different domestic chip companies such as Huawei and Phytium instead of these US-origin products. The new rules aim to encourage the preference of domestic solutions.

While the worldwide values ​​of Intel and AMD have decreased after this move by China, China is positioned as a very important market for both companies. Last year, Intel made 27 percent of its total sales to China, while AMD made 15 percent.

“A new phase has been reached in imposing sanctions on chip manufacturers”

ADEO Cyber ​​Security Cyber ​​Security Expert Ersin Çahmutoğlu, in his statement to the AA correspondent, noted that China’s ban on Intel and AMD chips in government institutions and the USA’s sanctions on chip manufacturers related to Huawei mean a new phase.

Çahmutoğlu said, “We see that the technology war, which has been going on for a while between the USA and China, is gaining momentum. Both countries are making great efforts in the struggle to produce semiconductors and have a say in the worldwide market. This means that new steps can be taken in this war.” he said.

Emphasizing that many experts think that these decisions may have negative effects on the global supply chain and technology sector, Çahmutoğlu reminded that there have been chip crises in the world at certain periods in the last few years and continued as follows:

“This crisis continued after the epidemic. The main reason for these is the cost of production and the problem of raw materials, but the struggle between the USA and China for dominance in this field also affected the crisis. We can see similar crises in today’s situation. The USA, its allies and the countries in the Western league, ‘China’ “It has been announced that China will put pressure on them not to buy products such as semiconductors from China. In return, China is expected to display such an attitude towards its close circle. Therefore, it is thought that the chip supply chain and industry will be negatively affected and this will cause problems.”

“He thinks that chip manufacturing companies that are not his own are collecting data in both countries.”

Ersin Çahmutoğlu underlined that the USA sees Chinese origin products as a national security problem and said that this is another reason for the crisis between the two countries.

Çahmutoğlu stated that it is claimed that Huawei and its related companies and chip manufacturers are collecting data from organizations in Western countries on behalf of the Chinese state, and said, “The US and UK intelligence services have found that there are back doors in such products and that intelligence is being collected in NATO countries as well as the US and its allies through these back doors.” “China also has a similar idea. It claims that Intel and AMD companies work directly with American intelligence. Therefore, they have attempted to completely ban the products of such US companies on security grounds.” he said.

Pointing out that these developments may be a danger sign, especially for countries and multinational companies that are dependent on foreign chip companies, Çahmutoğlu stated that economic problems will arise in the event of a possible major crisis and if the supply chain stops.

Çahmutoğlu emphasized that some countries and companies are considering reducing their dependencies in order to avoid being affected by this situation and said:

“They can take a step as a third party on this issue and cooperate. Otherwise, if the war continues, there may be crises between these parties. This war between the USA and China is an issue that the whole world follows closely. They are trying to predict where the war will go. States and many “Multinational companies are aware that someone must take steps to prevent a serious crisis in the technology sector. This suggests that there may be certain changes in supply in the sector. It is difficult to predict what will happen in the current situation. However, if this war continues, no one can say that there will not be possible major crises.”

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