Sunday, Commerce Secretary Gina Raimondo downplayed Huawei Technologies’ recent microchip breakthrough, reiterating the United States’ technological dominance in this critical field. Raimondo’s comments align with the Biden administration’s belief that their chip sale restrictions to China are bearing fruit, regardless of advancements made by China.
US Technological Edge
“We have a substantial technological lead over China in the semiconductor industry,” Raimondo emphasized in an interview on CBS News’ “60 Minutes.” The United States possesses the most innovative and sophisticated microchips, thanks to continuous advancements by American scientists and engineers.
Despite Huawei’s release of a 5G-capable smartphone equipped with a domestically produced chip, Raimondo maintained that China’s capabilities lag years behind those of the US.
National Security Concerns
Commenting on Huawei’s chipmaking partner, SMIC, Raimondo raised concerns that it may have violated US law in providing advanced chips to the Chinese phone maker. She stressed that protecting national security and safeguarding American businesses would remain paramount in the United States’ approach to trade with China.
“While we intend to engage in trade with China on most goods and services, there are certain technologies that are directly linked to national security, and we will protect those,” Raimondo asserted.
Global Tech Arms Race
The global race for chip supremacy has escalated since Russia invaded Ukraine in 2022. In response, the United States and its allies, including the Netherlands and Japan, imposed strict controls on advanced tech exports, including microchip technology.
Raimondo acknowledged that these export controls have hindered Russia’s ability to wage war by limiting its access to advanced technologies. She noted, however, that Russia has sought alternative sources for chips.
Boosting Domestic Semiconductor Production
To strengthen its position in the global chip race and counter rivals like China, the US government has invested billions of dollars through the CHIPS and Science Act. This act aims to foster the domestic semiconductor industry and finance the research and development of next-generation chips.
In recent weeks, generous grants and loans have been disbursed to major chipmakers such as Taiwan Semiconductor Manufacturing Co., Samsung Electronics, and Micron Technology. These companies are increasing their production capacity in the United States.
The United States remains cautious about China’s technological progress, but it believes its measures to restrict chip exports are effective. The Biden administration is also investing heavily in domestic semiconductor production, with the goal of maintaining technological dominance in this critical field.
