Reuters learned about US plans to limit the supply of semiconductors to China

Reuters learned about US plans to expand restrictions on the supply of semiconductors to China As conceived by the authorities, the measure should help prevent the purchase of American technologies by China max-width: 320px) and (-webkit-min-device-pixel-ratio: 2), (max-width: 320px) and (min-resolution: 192dpi)” >

The administration of US President Joe Biden plans to expand restrictions on the supply of semiconductors for the production of chips and artificial intelligence tools to China in October. This was reported by Reuters, citing sources familiar with the matter.

According to the agency, the Department of Commerce will publish new rules for the export of semiconductors, which have already been mentioned in letters to three US companies— KLA Corp., Lam Research Corp. and Applied Materials Inc. The agency prohibited them from sending chip-making equipment to Chinese factories that produce advanced semiconductors with a manufacturing process of less than 14 nanometers without permission.

In addition, the ministry will consolidate the rules contained in the letters to Nvidia Corp. and Advanced Micro Devices in August. Companies were required to suspend shipments of several types of artificial intelligence computing chips unless they had a special license.

US authorities may impose licensing requirements for China to ship products with targeted chips, one source said. The list may include data center servers that contain the Nvidia A100 chip from Dell Technologies, Hewlett Packard Enterprise, and Super Micro Computer.

A senior Commerce Department official declined to comment on plans to expand restrictions. The agency spokesman spoke of a “comprehensive approach to complementary actions to protect US interests,” as well as intentions to prevent China from acquiring US technology to modernize the military.

The US began restricting the sale of American technology to Chinese companies in 2020. Among them were firms such as Semiconductor Manufacturing International Corp. and Hangzhou Hikvision Digital Technology Co. The measure restrained the growth rate of firms, but stimulated production, and then large Western companies became interested in Chinese manufacturers, wrote Bloomberg.

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In July, Reuters reported that the Biden administration had asked for allies impose similar restrictions on the supply of semiconductors to prevent foreign companies from selling technology to China bypassing the US ban.

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