U.S. grant applicants will not be able to develop technology chips in China less than 28 nm

U.S. grant applicants will not be able to develop technology chips in China less than 28 nm

An important condition for producers of chips to receive enterprise development subsidies in the United States will be a ban on certain investments in China and other unfriendly countries for a period of ten years, and the technological frontier will run according to 28 nm lithographic standards, more modern technologies for applicants for US subsidies in the PRC territory will not be able to develop for a period of 10 years.

The recent United States Congress grant package of $52 billion has been explained by Bloomberg for the development of the country's semiconductor industry. Foreign companies will also be eligible for government support, but they will in any case have to abandon plans to expand chip production in unfriendly countries using 28 nm technology. The type of product produced is of no particular importance, as the prohibition applies to both memory chips and logical chips.

The exception is that the producer expands the production of 28 nm or more mature chips in China, mainly for the needs of the domestic market or for some of the unfriendly countries, and if the US authorities find that any of the grantees have violated these rules, they will have to pay back to the state budget in full.

Intel, TSMC and Samsung Electronics continue to be the main grant applicants in the United States. The latter has a large memory chip manufacturing company in China, but it uses more mature lithographic technologies. Intel now transfers its memory production plant in China to SK hynix, and only TSMC has a company in Nanjing, which produces both 28 nm chips and more advanced 16 nm. It appears that the restrictions proposed by the U.S. authorities will affect TSMC to a greater extent.