On Tuesday, the US Department of Commerce announced new restrictions under the $50 billion CHIPS and Science Act, adding “national security guardrails” to prevent China, Russia, Iran, and North Korea from benefiting from federal funds. These new guardrails aim to impose limitations on semiconductor manufacturers, including TSMC, Samsung Electronics, and Intel, all of which operate in China. However, the Biden administration claims that the National Security Guardrails are intended to ensure that technology and innovation funded by the CHIPS and Science Act are secure. Under the new rules, companies cannot increase their production capacity in China by more than 5% for advanced chips and 10% for older technology. Additionally, the act will limit spending on investments in advanced capacity in China to $100,000. [Bloomberg]