Biden administration to impose expanded restrictions on exports to China

According to insiders, U.S. President Joe Biden's administration is discussing restrictions on exports to China of semiconductors that can be expanded. Semiconductors are widely used as artificial intelligence tools as well as for the production of microchips.

This year, three U.S.-based companies operating in the U.S., namely KLA Corp, Lam Research Corp and Applied Materials Inc, were sent letters with new rules based on the restrictions. The people who provided the information on condition of anonymity also said that the Commerce Department is going to release the letters soon. How and when the new rules will be implemented is not yet known.

Exporter companies without a Commerce Department license will be prohibited from supplying chipmaking equipment to Chinese factories that produce advanced semiconductors with a process technology below 14 nanometers.

The rules will also restrict Nvidia Corp. and Advanced Micro Devices. The restrictions would order the companies to stop supplying artificial intelligence computing chips to China unless they are licensed.

The goal of the U.S. president's administration is to thwart China. The Biden administration is targeting areas of technology where the U.S. still retains dominance

The Biden administration was discussing restrictions on exports to China, Reuters was the first to report about it in July. Specifically, there was talk of banning exports of chip-making tools to the factories located in China that produce advanced semiconductors at 14 nanometers or less.

According to two sources, U.S. officials asked allied nations to support the restrictions. Thus, foreign companies will not supply technology to China, which is also prohibited from being sold to U.S. firms.

Clit Willems, a former Trump administration trade official, said that working with allies would maximize the effectiveness of the bans and minimize contingencies.

Source: Reuters.com