Wednesday, May 31, 2023
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Reuters: U.S. to tighten regulations on chip exports to China

While the official remains unconfirmed, Reuters reports that the Biden administration is preparing a new set of sanctions to block exports 14 Nano-semiconductors and chip-making tools with artificial intelligence capabilities.

The Ministry of Commerce has sent letters to some of the major companies in the industry that cooperate with China and supply chips to China. Chinese companies. Some of those companies include Nvidia, AMD and Intel, which have publicly acknowledged the letters, but most officials have not commented.

This sounds a lot like the current restrictions that allow U.S. companies to work with China only after obtaining permission from the Commerce Department.

USA is expected to tighten its regulations of chip exports to China

These letters are common practice to ensure prompt execution, but only the company that receives the letter is obligated to comply. Meanwhile, the Commerce Department is working with the Biden administration to develop rules that apply across the industry and are expected to be officially announced next month.

Some believe that even US companies using such chips will be denied access to the Chinese market. Such companies include Dell, Hewlett-Packard and Supermicro.

If this thing is put into practice, it will cause trouble for China, because despite China’s advanced technology and production capacity, no Chinese company has the ability to mass-produce competitive Proprietary technology or tools for modern chips. The industry is dominated by the United States, South Korea and Taiwan. Therefore, the ban could become a bottleneck for China.

Biden’s office will seek support from allies outside the United States to make the ban more effective.




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