Semiconductor chips have emerged as the hottest commodity in the global race for technological supremacy.
Signs of an escalating chip trade war were evident already in October last year.
But how did it all come to this?
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Citing national security concerns, the US has been taking steps to cripple Beijings ambitions.
This also applies to foreign firms that use American tools or software in their design and production process.
According toreports, the Biden Administration is considering further export restrictions on AI chips as soon as this summer.
Our relations are not black or white and our response cannot be either.
This is why we need to focus on de-risk not decouple.
The bloc will also provide help to Japanese semiconductor companies that wish to operate within its borders.
Vestager hassaidthat the strategy is country-agnostic and will use geopolitical filters when assessing the risks.
Yet, China was mentioned both directly and indirectly.
It is no secret that Russia has inspired our energy security concerns.
Earlier in January, Breton stressed the unions commitment to support the US goal of curbing Chinas semiconductor industry.
AMSL is already prohibited from selling its most sophisticated machines to China from 2019.
According to the company, the new measures will also include its most advancedimmersion DUV lithography systems.
National security concerns were once again cited as the reason behind the move.
Both metals are included in the EUs list ofcritical raw materials, deemed crucial to Europes economy.
While no particular consensus was reached, for now, the countries want to keep their communication channels open.
But one thing is certain: its response will further shift the pieces on the geopolitical chessboard.
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW.
With a background in the humanities, she has a soft spot for social impact-enabling technologies.
