September 12, 2022

Reuters learned about US plans to limit the supply of semiconductors to China

By Azlyrics

Reuters learned about US plans to expand restrictions on the supply of semiconductors to China As conceived by the authorities, the measure should help prevent the purchase of American technologies by China max-width: 320px) and (-webkit-min-device-pixel-ratio: 2), (max-width: 320px) and (min-resolution: 192dpi)” >

The administration of US President Joe Biden plans to expand restrictions on the supply of semiconductors for the production of chips and artificial intelligence tools to China in October. This was reported by Reuters, citing sources familiar with the matter.

According to the agency, the Department of Commerce will publish new rules for the export of semiconductors, which have already been mentioned in letters to three US companies— KLA Corp., Lam Research Corp. and Applied Materials Inc. The agency prohibited them from sending chip-making equipment to Chinese factories that produce advanced semiconductors with a manufacturing process of less than 14 nanometers without permission.

In addition, the ministry will consolidate the rules contained in the letters to Nvidia Corp. and Advanced Micro Devices in August. Companies were required to suspend shipments of several types of artificial intelligence computing chips unless they had a special license.

US authorities may impose licensing requirements for China to ship products with targeted chips, one source said. The list may include data center servers that contain the Nvidia A100 chip from Dell Technologies, Hewlett Packard Enterprise, and Super Micro Computer.

A senior Commerce Department official declined to comment on plans to expand restrictions. The agency spokesman spoke of a “comprehensive approach to complementary actions to protect US interests,” as well as intentions to prevent China from acquiring US technology to modernize the military.

The US began restricting the sale of American technology to Chinese companies in 2020. Among them were firms such as Semiconductor Manufacturing International Corp. and Hangzhou Hikvision Digital Technology Co. The measure restrained the growth rate of firms, but stimulated production, and then large Western companies became interested in Chinese manufacturers, wrote Bloomberg.

Read on RBC Pro Pro China's housing market is in a bubble. Can it provoke a global crisis Articles Pro In IT, you can have a high salary in your first position. Who to study for Pro Instructions Doesn't give advice and is indifferent to prestige: 3 types of executive magnets Pro Instructions “We in Washington love to eat pizza”: why hockey player Ovechkin is against diets I Learned on the Phone”: Adidas CEO on Career Pivots Pro Articles Five Tips to Start Meditating Regularly Pro Instructions “Learning to Set People Up Diplomatically”: What It's Like to Work at Amazon Articles In June, the agency indicated that over the past year, 19 of 20 companies from China became the fastest growing within the industry among other countries. Suppliers of software, processors, and equipment vital to chip manufacturing have increased revenues by several times those of the world's industry leaders.

In July, Reuters reported that the Biden administration had asked for allies impose similar restrictions on the supply of semiconductors to prevent foreign companies from selling technology to China bypassing the US ban.

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