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US-China tensions

U.S. CHIPS Act fund bars chipmakers from China expansion for 10 years

Washington also bans beneficiaries of $39bn program from using cash for share buybacks

U.S. Commerce Secretary Gina Raimondo, right, and Secretary of State Antony Blinken participate in a U.S.-European Union Trade and Technology Council ministerial meeting at the University of Maryland in December.   © Reuters

WASHINGTON (Financial Times) -- Chipmakers must agree not to expand capacity in China for a decade if they are to receive money from a $39 billion federal fund designed to build a leading-edge U.S. semiconductor industry, according to new Commerce Department rules.

The department on Tuesday called for applications for funds from the CHIPS and Science Act passed by Congress last year, as it launched a landmark industrial policy program designed to counter China.

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