In a strong statement at the Reagan National Defense Forum in Simi Valley, California, on Saturday, US Commerce Secretary Gina Raimondo emphasized the urgent need for increased funding to prevent China from gaining ground in cutting-edge semiconductor technology. Raimondo made it clear that the United States cannot afford to let China obtain these crucial chips, stressing the imperative of denying them access to the nation's most advanced technological innovations.

To effectively achieve this goal, Raimondo underscored the importance of additional funding for the Commerce Department's Bureau of Industry and Security, responsible for managing export controls within the US. Raimondo expressed her dissatisfaction with the current budget of $200 million, comparing it to the cost of just a few fighter jets. Urging Congress to allocate more funds, she emphasized the need to adequately support this critical operation.

Raimondo acknowledged that American companies will need to adapt to national security priorities, including the export controls that her department has imposed on semiconductor exports. Addressing the CEOs of chip companies in the audience, she acknowledged their concerns about revenue loss but emphasized that safeguarding national security takes precedence over short-term financial gains.

Nvidia Corp., a prominent chip designer, faced criticism from Raimondo after it designed chips specifically for the Chinese market following the initial round of restrictions imposed by the US in October 2022. The Commerce Department responded by updating the semiconductor curbs to include Nvidia's China-specific chips. In response, the company swiftly designed three new AI components for the Asian country.

Raimondo warned that any attempts to work around export controls would be met with swift action. If a chip is redesigned to enable specific functionalities for China, she pledged to assert control over it immediately. While acknowledging the importance of communication with China, Raimondo emphasized that matters of national security require a vigilant approach, acknowledging the severity of the threat posed by China's advancements in semiconductor technology.

"This is the biggest threat we've ever had and we need to meet the moment," Raimondo stressed, underlining the significance of addressing the issue promptly and effectively. As the United States seeks to maintain its technological superiority and protect its national security interests, Raimondo's call for increased funding from Congress highlights the urgency of responding to China's semiconductor advancements with appropriate financial resources.

The request for increased funding reflects the heightened importance of countering China's progress in the semiconductor sector, and it remains to be seen how Congress will respond to Raimondo's call to action.