(NewsNation) — China is building semiconductor chip factories in an effort to compete in the global artificial intelligence race and cope with U.S. sanctions.
China is reportedly considering constructing massive facilities to manufacture the critical chips as the global AI race continues to intensify. China has been investing in the semiconductor industry, but the most advanced chips continue to be produced in other countries.
That includes Taiwan, the current leader in advanced semiconductor production. Mainland China and Taiwan have seen increased tensions in recent years, as China considers Taiwan a part of its territory while Taiwan maintains it is independent.
The Biden administration issued sanctions that prevent U.S. companies from selling advanced computing chips, equipment to make the chips or other related products to China without a special license.
In addition to restrictions on U.S. companies, the Biden administration also imposed international restrictions prohibiting countries from selling chips used in AI and supercomputing to China if they’re made using U.S. technology, software or machinery.
The race to develop AI has been a focus of lawmakers concerned about China’s ambitions on the global stage. In response, the U.S. has worked to increase its own capacity in semiconductor production.
