- Republican lawmaker Michael McCaul, has accused the Biden administration of failing to prevent China’s SMIC from strengthening its chipmaking industry and military-industrial complex.
What happened
US lawmaker Mike Gallagher is calling for tougher action against SMIC, a major Chinese chipmaker, over national security concerns. Gallagher, who leads the House Select Committee on China, believes that SMIC could be linked to China’s military, which could pose a threat to US security. He is urging the US government to impose stricter sanctions and export restrictions on the company, limiting its access to advanced American semiconductor technology.
This call for stronger measures comes amid escalating tensions between the US and China over technology and security issues. While SMIC denies any military connections and insists its products are for civilian use, the US sees its growing influence in the semiconductor industry as a potential threat.
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Why it is important
This news is important because it highlights rising tensions between the US and China over semiconductors, a key technology for both national security and economic power. US lawmaker Mike Gallagher is calling for tougher sanctions on SMIC, a Chinese chipmaker, due to concerns about its ties to China’s military. The goal is to prevent the misuse of advanced semiconductor technology for military purposes.
The issue is part of the broader US-China rivalry for tech dominance. Both countries are competing for leadership in the semiconductor industry, which could influence global power dynamics and trade relations.
Restricting SMIC’s access to US technology could disrupt global supply chains, impacting industries that rely on these critical components. Additionally, this could slow China’s progress in developing its own semiconductor industry, forcing both countries to invest more in domestic production, which may reshape the global tech economy.
