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Biden wants to hit China with broader restrictions on US chip and tool exports

Reuters reports that Biden will hit China with broader restrictions on US chip and tool exports

The Biden administration plans next month to expand restrictions on U.S. shipments to China of semiconductors used in artificial intelligence and chipmaking tools, several people familiar with the matter said.

The Department of Commerce intends to release new regulations based on restrictions communicated in letters to three US companies — KLA Corp, Lam Research Corp (LRCX.O) and Applied Materials Inc (AMAT.O) — earlier this year, said the people continued on condition of anonymity.

The rules would also codify restrictions in Commerce Department letters sent to Nvidia Corp (NVDA.O) and Advanced Micro Devices (AMD.O) last month, ordering them to halt shipments of several artificial intelligence computing chips to China , unless they receive licenses. Continue reading

Some of the sources said the regulations are likely to include additional measures against China. The restrictions could also be changed and the rules published later than expected.

Converting the letters into rules would expand their reach and could subject other US companies producing similar technologies to the restrictions. The regulations could potentially apply to companies trying to challenge Nvidia and AMD’s dominance in artificial intelligence chips.

A source said the rules could also impose licensing requirements for shipments to China of products containing the target chips. Dell Technologies, Hewlett Packard Enterprise (HPE.N) and Super Micro Computer (SMCI.O) manufacture data center servers that contain Nvidia’s A100 chip.

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