U.S. Companies Aid China’s Bid for Chip Dominance Despite Security Concerns

Silicon Valley venture-capital firms and chip-industry giants are ramping up deals in China’s semiconductor industry, alarming U.S. officials

How the Chip Shortage Is Forcing Auto Makers to Adapt

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How the Chip Shortage Is Forcing Auto Makers to Adapt

The number of semiconductors in a modern car, from the ignition to the braking system, can exceed a thousand. As the global chip shortage drags on, car makers from General Motors to Tesla find themselves forced to adjust production and rethink the entire supply chain. Illustration/Video: Sharon Shi

By

Kate O’Keeffe

,

Heather Somerville

and

Yang Jie

Nov. 12, 2021 7:00 am ET

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U.S. firms and their China affiliates are ramping up investment in Chinese semiconductor companies, aiding Beijing’s bid for chip-sector dominance and complicating Washington’s efforts to preserve America’s lead in the critical technology, a Wall Street Journal investigation has found.

U.S. venture-capital firms, chip-industry giants and other private investors participated in 58 investment deals in China’s semiconductor industry from 2017 through 2020, more than double the number from the prior four years, according to an analysis of deals data by New York-based research firm Rhodium Group done at the Journal’s request.