US plans tougher trade rules following TSMC-Huawei chip war

Huawei TSMC chip dispute is taking a new turn as the US authorities plan even tougher trade rules. The Biden administration aims to tighten the flow of chipset products going to China, preventing the country from making high-end techs.

Bloomberg notes that the US started instructing TSMC, Intel, and Samsung to keep chips away from flowing to China. It is working on new regulations before the Biden see-offs and Donald Trump takes over the country’s presidential duties.

US further orders its chipmakers to investigate customers before supplying chips to them. It is pushing Samsung and others to increase due diligence on China.

All these US rules and changes follow the Huawei-TSMC chip controversy. Despite several restrictions, the Taiwanese firm ended up finding one of its chips in Huawei AI products. Looks like the incident led to more problems for Chinese firms.

TSMC even started searching for culprits that are secretly diverting TSMC-made chips to the US-blacklisted company – Huawei. It cut off ties with China’s Sophgo and Singapore’s PowerAIR after suspecting them of being involved in this case.

Read More:

• US to ban another Huawei-linked company over TSMC chip controversy
• TSMC ends relation with Singapore’s PowerAIR over Huawei chip dispute

US is now trying to shut the backdoor that enables Huawei and Chinese tech giants to gain advanced chipsets. The Biden administration may introduce caps on the number of AI chips exported to different countries. Thus, only the closest US allies can access unlimited US AI technologies and processors, unlike China.

Donald Trump is going to take the presidential seat in the coming days. China sees Trump’s return as an opportunity for its chip industry. Whether the next President helps the country or makes it suffer even more would be worth looking at.

US plans tougher trade rules following TSMC-Huawei chip war (Image Credits: Huawei)

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