US Congress rolls back proposal to restrict use of Chinese chips

The US Congress is rolling back proposed legislation that would place restrictions on the use of Chinese-made chips by the government and its contractors, after  companies argued that the measures would raise costs.

While the draft legislation still provides for restrictions to be enacted, contractors now have five years to comply with them, rather than the two years stipulated in an earlier version of the proposal, and the language of the new draft leaves room for waivers to the restrictions under certain circumstances.

In September, Senator Chuck Schumer, a Democrat from New York, and Senator John Cornyn, a Republican from Texas, announced a provision in the National Defense Authorization Act (NDAA) for fiscal 2023 that would restrict federal agencies and contractors from using semiconductors and chips from China’s Semiconductor Manufacturing International Corporation (SMIC), Yangtze Memory Technologies Corp (YMTC), and ChangXin Memory 703 Technologies (CXMT).

To read this article in full, please click here