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Biden Administration to Hit China with Broader Curbs on US Chip and Tool Exports

Joe Biden, 46th US President

The Biden administration is likely to broaden curbs on US shipments to China of semiconductors used for artificial intelligence (AI) and chipmaking tools. As per the reports, the Commerce Department intends to issue new regulations based on restrictions communicated in letters earlier this year.

The restriction is mainly associated with three US companies including KLA Corp, Lam Research Corp and Applied Materials Inc. However, the plan for new rules has not been previously reported. The restrictions forbade them from exporting chipmaking equipment to Chinese factories which produce advanced semiconductors with sub-14 nanometer processes. It didn’t apply to sellers who obtained Commerce Department licenses.

Also, the rules would codify restrictions in Commerce Department letters sent to Nvidia Corp and Advanced Micro Devices last month. The said restrictions instructed them to halt shipments of several artificial intelligence computing chips to China unless they obtain licenses.

The regulations would likely include additional actions against China. Moreover, the restrictions could be changed and the rules published later than expected.

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