Chinese groups advise caution regarding purchases of U.S. semiconductor chips

Chinese associations are encouraging caution among their members regarding the purchase of U.S. chips.

Chinese groups advise caution regarding purchases of U.S. semiconductor chips
Chinese industrial associations have expressed strong opposition to the recent U.S. control measures regarding semiconductor exports and have advised domestic firms to be cautious when buying U.S. chips.

On Tuesday, several organizations, including the China Semiconductor Industry Association (CSIA), the China Association of Automobile Manufacturers (CAAM), the Internet Society of China (ISC), and the China Association of Communication Enterprises (CACE), issued separate statements denouncing what they described as the U.S. government’s misuse of export controls.

The CSIA pointed out that "the U.S. arbitrary control measures against China have caused disruptions in the supply chain and increased operating costs for American companies, affecting the stable supply of U.S. chips and making them no longer secure and reliable." This has led the association to recommend that “related Chinese industries have to exercise caution when procuring chips from the United States.”

The CAAM echoed these sentiments, stating that the trust and confidence in acquiring chip products from American firms are being undermined within the Chinese automotive sector. The association also expressed openness to global chip companies, encouraging them to "strengthen their collaboration with Chinese automotive and chip enterprises in various aspects, invest in China, engage in joint research and development, and share development opportunities."

Meanwhile, the CACE called for government investigations into the security of the supply chain for critical information infrastructure and urged the implementation of strong measures to ensure the stable and secure operation of such infrastructure.

To promote the security, stability, and sustainable growth of China's internet industry, the ISC urged domestic companies to broaden their collaboration with chip manufacturers from other countries and regions, as well as to actively engage with chips produced by both domestic and foreign firms within China.

Thomas Evans contributed to this report for TROIB News