Washington targets Chinese tech sector – Reuters – RT Business News

Restrictions on semiconductor shipments could be introduced next month

The US government plans next month to tighten restrictions on shipments from the country of semiconductors used for artificial intelligence, as well as chip-making tools, to China, Reuters reported this week, citing its sources. .

People familiar with the matter told the outlet that the Commerce Department intends to issue new regulations based on restrictions communicated in letters earlier this year to three US companies – KLA, Lam Research and Applied Materials. The plan for the new rules was not previously reported, they noted.

According to the report, the letters, which the companies have publicly acknowledged, prohibited them from exporting chip-making equipment to Chinese factories that produce advanced semiconductors with processes below 14 nanometers unless the sellers agreed. obtain licenses from the US Department of Commerce.

The rules would also codify restrictions in Commerce Department letters sent to Nvidia Corp and Advanced Micro Devices last month, ordering them to halt shipments of several artificial intelligence computer chips to China unless they get licenses.

The regulations could potentially apply to companies trying to challenge Nvidia and AMD’s dominance in artificial intelligence chips, the report points out.

“The strategy is to stifle China and they found out that the chips are a choke point. They can’t make that stuff, they can’t make the manufacturing equipment,” Jim Lewis, technology expert at the Center for Strategic and International Studies, told Reuters, adding: “That will change.”

The world’s two largest economies, the United States and China, have struggled to dominate key technologies, including semiconductors. China lags significantly behind the United States in chip development, with its biggest chipmaker SMIC aiming to wean itself off foreign technology.

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