US joins EU to curb mature chips from China

The EU is considering an analysis of how Chinese mature chips (large-sized chips) are integrated into European technology networks, according to a document seen by Bloomberg. The move also reflects an initiative by the Biden administration to assess the risks posed by low-end chips that are critical to the military and other industries, from electric vehicles to infrastructure.

Not only advanced chips, the US and EU also want to restrain China from developing mature chips

The European Commission (EC) initiative represents a first step towards developing joint measures with the US, including restrictions on China, as mature chips play a key role in the global economy . China's increased investment in building factories to produce them is raising concerns on both sides of the Atlantic that Chinese companies will consolidate their position in this market and seriously affect the West, as has happened in the solar and steel sectors.

"The EU and the US will continue to collect and exchange non-confidential information and market data on non-market policies and practices, and commit to consult each other on planned actions," a draft document expected to be presented at the EU-US Trade and Technology Council (TTC) next month in Belgium says.

China's chip-making slowdown is expected to be one of the key topics at the upcoming event. TTC will also discuss expanding joint arrangements on an early warning mechanism for supply chain disruptions and exchanging information on government support for the semiconductor sector.

Countries are expected to commit to taking a risk-based approach to artificial intelligence (AI), developing criteria for evaluating general AI models, agreeing on common principles and standards for research and development of 6G wireless communications systems, and cooperating on standardization of new technologies, including biotechnology.

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