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


U.S. President Joe Biden speaks during the groundbreaking ceremony for a new Intel semiconductor plant on September 9, 2022 in Johnstown, Ohio. Several people familiar with the matter said the Biden administration plans next month to restrict US shipments to China of semiconductors used for artificial intelligence and manufacturing tools. chip export.

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Several people familiar with the matter said the Biden administration plans next month to restrict US shipments to China of semiconductors used for artificial intelligence and manufacturing tools. chip export.

The Commerce Department intends to announce new regulations based on restrictions announced in a letter earlier this year to three US companies – KLA, Lam Nghien and Application materials, the resident said, speaking on condition of anonymity. Plans for the new rules have not been previously reported.

The letters, which the companies publicly acknowledge, prohibit them from exporting chip-making equipment to Chinese factories that produce advanced semiconductors with processes below 14 nanometers unless the seller obtains a license from the seller. Department of Commerce.

The rules will also codify the restrictions in Commerce Department letters sent to Nvidia and Advanced Microphone Device last month directed it to halt shipments of some artificial intelligence computing chips to China unless they obtained a permit.

Some sources said the regulations would likely include additional actions against China. Restrictions can also be changed and rules published later than expected.

So-called “notified” letters allow Commerce to bypass lengthy rule-writing processes to introduce controls quickly, but these letters apply only to companies you get them.

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Making the letters the rule would expand their reach and could subject other US companies producing similar technology to restrictions. The regulations could apply to companies trying to challenge Nvidia and AMD’s dominance in artificial intelligence chips.

Intel and startups like Cerebras Systems are targeting the same advanced computing markets. Intel said it was closely monitoring the situation, while Cerebras declined to comment.

One source said the rules could also impose licensing requirements on shipments to China of products containing targeted chips. Dell Technology, Hewlett Packard Enterprise and Microcomputer create a data center server containing Nvidia’s A100 chip.

Dell and HPE said they were monitoring the situation, while Super Micro Computer did not respond to requests for comment.

A senior Commerce official declined to comment on the upcoming action, but said: “As a general rule, we seek to codify any restrictions in letters notified with a change. regulations.”

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A spokesman for the Commerce Department on Friday declined to comment on specific regulations but reiterated that it is “taking a comprehensive approach to take additional actions … to protect safety.” national security and foreign policy interests”, including preventing China from acquiring American technology. applied to military modernization.

KLA, Applied Materials and Nvidia declined to comment while Lam did not respond to a request for comment. AMD did not comment on the specific policy move but reaffirmed that it does not foresee a “material impact” from its new licensing request.

‘Suffocation point’

The planned action comes as the administration of President Joe Biden has sought to thwart China’s advances by targeting technologies in which the United States still maintains dominance.

“The strategy is to strangle China, and they’ve found that the chip is a choke point. They can’t make this thing,” said Jim Lewis, a technology expert at the Center for Strategy and International. , they can not manufacture equipment” Study. “That will change.”

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In an update on China-related measures last week, the Chamber of Commerce, an American business lobbying group, warned members of impending restrictions on AI chips. and chip manufacturing tools.

“We are now hearing that members should expect a set of rules or possibly a general rule ahead of the midterm elections to codify guidance in the ‘notified’ letter (Department of Commerce). ) issued recently to chip design and chip equipment companies,” the chamber said.

The group also said the agency plans to add more Chinese supercomputer entities to the trade blacklist.

Reuters first reported in July that the Biden administration was actively discussing banning the export of chip-making tools to Chinese factories that manufacture advanced semiconductors at the 14-nanometer node and smaller.

US officials have been reaching out to allies to lobby them to enact similar policies so foreign companies cannot sell technology to China that US companies would be barred from shipping, two of sources said.

“Working with allies is key to maximizing efficiency and minimizing unintended consequences,” said Clete Willems, a former Trump administration trade official. “This will facilitate broader regulations that others can copy instead of single ‘notified’ letters.”



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