New report shows US chip industry's reliance on China
More than 5% of equipment and materials supplied to US chipmakers originate in China, which also possesses some 90% of the rare earths required to manufacture semiconductors.
The US chip industry has a significant reliance on China, with more than 5% of equipment and materials supplied to US chipmakers originating from China, according to a new report. Additionally, China possesses around 90% of the rare earths necessary for semiconductor manufacturing, highlighting the structural dependency of US tech on China.
This reliance extends beyond physical materials to include the use of cheaper, open-source Chinese AI by US tech startups, which posed a challenge when the Trump administration considered banning it. Nearly 300 US firms spoke out against the ban, indicating that open intelligence itself has become a geopolitical dependency.
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