To reduce its dependence on the United States and its allies for semiconductors, China is building domestic semiconductor manufacturing facilities by importing U.S., Japanese, and Dutch semiconductor manufacturing equipment. In the longer term, it also hopes to indigenize this equipment to replace imports. U.S. and allied policy responses to China’s efforts will significantly affect its prospects for success in this challenging task.
The United States and its allies enjoy a competitive advantage in the production of artificial intelligence chips necessary for leading AI research and implementation. This memo identifies chokepoints for limiting China’s access to key chipmaking equipment.
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