China’s weak link in the semiconductor supply chain

Citing national security concerns, the Biden administration’s latest rules, which tightened regulations issued last October, aim to undercut China’s artificial intelligence (AI) development by cutting off the country’s access to less-advanced chip-making equipment from ASML and data-centre chips from Nvidia. The US government’s stepped-up controls that target less advanced lithography systems have exposed China’s deficiency in chip-making equipment, despite recent progress towards Beijing’s overall goal of semiconductor self-sufficiency. Will China bow down to US demands ?