US President Joe Bidens administration has been criticized by China over its new export rules. Concerns are being raised by Beijing over the decisions impact on the global industry. To stabilize the global semiconductor industry and secure legitimate interests Washington has moved to tighten these regulations.What is the China - U.S. Chip matterChina recently voiced its concerns against the United States increasing regulations on semiconductor exports, claiming that they have added trade barriers creating uncertainty in the industry. As part of a bigger initiative to stifle Beijings chipmaking sector over worries about national security, the Biden administration last week changed regulations aimed to make it more difficult for China to get its hands on American artificial intelligence chips and chipmaking facilities. Commerce Ministry Spokespersons take on the matterAccording to a spokesperson from the Commerce Ministry, the United States for its national security concern, changed the rules without clear reasons and made control measures stricter. This has made it harder for Chinese and American companies to do business together as usual. It has also caused a lot of uncertainty for the global semiconductor industry.Moreover, adding to his statement, the official mentioned that, China is willing to work with all the parties to boost mutually beneficial cooperation and promote the security and stability of the global semiconductor industry and supply chain.Developments in the Indian Semiconductor marketIndia is in a constant battle for emerging as a chip manufacturer which requires a lot of capital. Indias manufacturing sector is strategically critical since reliance on foreign suppliers of chips, particularly China or Taiwan could compromise the countrys security. Tata, always investing on Indias growth has setup a semiconductor chip fabrication unit in Gujarat with an expenditure of Rs.50,000 crores. The electronics plant for assembling and packaging of semiconductors at Jagiroad, Assam, was approved at a financial outgo of Rs.40,000 crores and the Assam state government will have a contribution of around Rs.21,000 crores.
