The U.S. and Europe Are Growing Alarmed by China's Rush Into Legacy Chips

U.S. and European officials are growing increasingly concerned about China's accelerated push into the production of older-generation semiconductors and are debating new strategies to contain the country's expansion. President Joe Biden implemented broad controls over China's ability to secure the kind of advanced chips that power artificial-intelligence models and military applications. But Beijing responded by pouring billions into factories for the so-called legacy chips that haven't been banned. Such chips are still essential throughout the global economy, critical components for everything from smartphones and electric vehicles to military hardware. That's sparked fresh fears about China's potential influence and triggered talks of further reining in the Asian nation, according to people familiar with the matter, who asked not to be identified because the deliberations are private.