US Set to Widen Curbs on Semiconductors for AI, Chipmaking Tools Shipments to China: Report

The US Commerce Department reportedly intends to publish new regulations previously communicated to three firms in the country.

By Jasmin Jose | Updated: 12 September 2022 12:04 IST

US Set to Widen Curbs on Semiconductors for AI, Chipmaking Tools Shipments to China: Report

The semiconductors sale only take place if the sellers take licenses from the Commerce Department

Highlights

The companies have publicly acknowledged the letters
Letters forbade them from exporting chipmaking tools to China
New regulations also include additional actions against China

The Biden administration reportedly plans to broaden existing curbs on US shipments of semiconductors used for artificial intelligence and chipmaking tools to China. Based on the restrictions that were previosuly communicated in letters to three US companies, the US Commerce Department intends to publish new regulations to further restrict the export of the semiconductors, as per the report. The letters are said to forbid the company from exporting chipmaking equipment to Chinese factories that produce advance semiconductors. The regulations are also expected to include additional actions against China.

According to a recent report by Reuters, the Biden administration is planning to broaden its curbs on US shipments of semiconductors used for artificial intelligence and chip-making tools to China next month.

The US Commerce department is expected to publish the new regulations based on the restrictions that were earlier communicated to three US companies including Applied Materials, KLA, and Lam Research.

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The companies have publicly acknowledged the letters which forbade them from exporting chipmaking tools to Chinese factories that produce advance semiconductors with sub-14 nanometre processes.

The semiconductors sale only take place if the sellers take licenses from the Commerce Department.

US President Joe Biden Signs Order for Implementation of CHIPS Act

As mentioned earlier, the new regulations are also said to include additional actions against China. The restrictions may also change and there are chances that the rules could also be published later than expected.

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