Washington D.C. is turning up the heat in the tech war with Beijing by banning more US chipmakers from working in China.
Several anonymous source told Reuters that the Biden Administration plans to restrict more US chipmakers from making exporting their technology to China. The plans would restrict shipments of semiconductors used in artificial intelligence (AI) and chip making tools.
Reuters’ sources said the US Commerce Department “intends” to impose further regulations on other US chipmakers. This will include American chipmakers KLA Corp, Lam Research Corp and Applied Materials Inc.
Source also told Reuters that US regulations may “likely include additional actions against China”. This news was followed by sources suggesting that the new US restrictions could change and rules could be published later than expected.
Reuters explained that so-called “is informed” letters enable the US Commerce Department to sidestep “lengthy rule-writing processes to put controls in place quickly, but the letters only apply to the companies that receive them.”
One source told Reuters the US’s new chip rules could “impose license requirements on shipments to China of products that contain the targeted chips.”
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The news about the additional ban comes after the Biden administration introduced new guidelines for American chipmakers NVIDIA and AMD as part of the $50bn CHIPS act, as Verdict previously reported.
NVIDIA and AMD were among the first US companies to be find their AI chip exports to China restricted. This only served to add more fuel to the fire in the US China tech war. The export rules restricted US exports of AI chips to China.
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