China's car industry wary of U.S.-made chips

Impacted by concerns over the reliability and security of their supply chain, China's automobile industry has to exercise more prudence when purchasing U.S.-made chips, said the China Association of Automobile Manufacturers in its statement on Tuesday.

The statement came as a response to the intensified U.S. semiconductor export controls announced on Monday, adding 136 Chinese companies to the Entity List and placed additional semiconductor equipment and high-bandwidth memory chips under export control.

U.S.-made semiconductor products for automobiles are no longer considered "reliable or secure", as the arbitrary alteration of export control regulations has significantly disrupted the stable supply of U.S. chips, said the CAAM in its statement, adding that China's trust in U.S. chip suppliers is also being undermined due to the expanded export controls.

To safeguard the stability and security of the automotive supply chain, the association called on Chinese automotive enterprises to exercise more prudence when purchasing U.S. chips.

In contrast to escalating restrictions from the U.S., the CAAM emphasized the highly globalized nature of the automotive sector and extended an invitation to global semiconductor companies, encouraging them to strengthen collaboration with Chinese automakers and chip manufacturers.

"We welcome global chip enterprises to invest in China, engage in joint research and development, and seize the opportunities offered by our expanding automotive market to achieve shared growth," the statement said.