Biden Administration Plans to Impose Broader Restriction on Chips Exported to Communist China

On September 11th, some insiders familiar with the matter, revealed that the Biden administration plans to expand limits on U.S. exports to Communist China of semiconductors used for artificial intelligence and chipmaking equipment.

The U.S. Department of Commerce intends to impose new restrictive measures on three American chip manufacturers including KLA Corp, Lam Research Corp, and Applied Materials Inc. The planned curbs were to ban their sales of chipmaking equipment to factories in Communist China producing semiconductors with sub-14 nanometer processes. These rules also apply to Nvidia Corp and Advanced Micro Devices. Some sources said the new restrictions involved a series of actions against Communist China, such as license requirements on shipments to Communist China of products containing the targeted chips.

Dell Technologies and Hewlett Packard Enterprise were currently keeping an eye on the issuance of measures given both firms had products using Nvidia’s chip. In addition, these curbs were directly sent to related companies through letters to put controls in place rapidly. A spokesperson for the Commerce Department stated that they were taking comprehensive additional actions to protect Washington’s national security and diplomatic interests to prevent the CCP from acquiring advanced American technology for military modernization.