The Biden administration plans next month to broaden curbs on U.S shipments to China of semiconductors used for artificial intelligence and chipmaking tools, Reuters reported citing sources.
The Commerce Department intends to publish new regulations based on restrictions communicated in letters earlier this year to three U.S. companies — KLA Corp, Lam Research Corp, and Applied Materials Inc.
The letters, which the companies publicly acknowledged, forbade them from exporting chipmaking equipment to Chinese factories that produce advanced semiconductors with sub-14 nanometer processes unless the sellers obtain Commerce Department licenses.
The rules would also codify restrictions in Commerce Department letters sent to Nvidia Corp and Advanced Micro Devices last month instructing them to halt shipments of several artificial intelligence computing chips to China unless they obtain licenses.
Some of the sources said the regulations would likely include additional actions against China. The restrictions could also be changed and the rules published later than expected.
One source said the rules could also impose license requirements on shipments to China of products that contain the targeted chips. Dell Technologies, Hewlett Packard Enterprise, and Super Micro Computer make data center servers that contain Nvidia’s A100 chip.
The planned action comes as President Joe Biden’s administration has sought to thwart China’s advances by targeting technologies where the United States still maintains dominance.
Earlier last week, the Department of Commerce unveiled its plan for dispensing $50 billion aimed at building up the domestic semiconductor industry and countering China, in what is expected to be the biggest U.S. government effort in decades to shape a strategic industry.
