Former DFAT Australia-China Council scholar Andrew Phelan says the US sanctions recently imposed on the export of high-end computer chips to China have had a “dramatic” and immediate effect on manufacturing in the country.
The Biden administration recently announced a set of controls that restrict the export of advanced chips, chipmaking equipment and design software created with technology from the United States.
“Every American engineering executive involved in the chip manufacturing, chip industry in China has resigned, effectively immediately,” Mr Phelan told Sky News Australia.
“And ASML, the Dutch supplier of the capital equipment that is used in making high-end chips has ceased servicing its Chinese customers.
“So … I think the Americans anticipated the third term, they were worried about China’s advances in chips, in artificial intelligence, in weaponizing these things, so they have stepped in, in what is the biggest I think US move against China in the last several years.”
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