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US chips are 'no longer safe' to buy, Chinese industry bodies say
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US chips are 'no longer safe' to buy, Chinese industry bodies say
Dec 3, 2024 3:55 AM

BEIJING, Dec 3 (Reuters) - Chinese companies should be

wary of buying U.S. chips as they are "no longer safe" and buy

locally instead, four of the country's top industry associations

said on Tuesday in a rare coordinated response to Washington's

curbs.

The associations cover some of China's largest industries,

including telecommunications, the digital economy, autos, and

semiconductors.

Their advice could impact U.S. chipmaking giants like Nvidia ( NVDA )

, AMD, and Intel ( INTC ) that, despite export

controls, have managed to keep selling their products in the

Chinese market.

The associations did not go into details on why U.S. chips

were unsafe or unreliable.

The Internet Society of China urged domestic companies to

think carefully before procuring U.S. chips and seek to expand

cooperation with chip firms from countries and regions other

than the United States, according to its official WeChat

account.

It also encouraged domestic firms to "proactively" use chips

produced by both domestic and foreign-owned enterprises in

China.

U.S. chip export controls have caused "substantial harm" to

the health and development of China's internet industry, it

added.

The warnings came after the United States on Monday launched

its third crackdown in three years on China's semiconductor

industry, curbing exports to 140 companies, including chip

equipment maker Naura Technology Group.

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