US ready to ban chip exports to China from next month
Many companies will be subject to the new rules based on the restrictions mentioned earlier.
This strategy is to strangle China.
Washington. US President Joe Biden is set to ban the export of semiconductors used for artificial intelligence and chipmaking tools to China from next month. Several people familiar with the matter said the Commerce Department intends to introduce the new rules based on the restrictions outlined in letters sent earlier this year to three US companies — KLA Corp, Lime Research Corp and Applied Materials Inc. However, no information has been given about the plan of these new rules yet.
According to a report by Reuters news agency, the letter prohibits companies from exporting chipmaking equipment to Chinese factories that make sub-14 nanometer advanced semiconductors without a license from the Commerce Department. The rules will also include restrictions imposed in Commerce Department letters sent to Nvidia Corp and Advanced Micro Devices last month. These companies were asked to stop exporting artificial intelligence computing chips to China until they were licensed.
Some sources said that the new rules are likely to take very strict action against China. Restrictions may also be changed and regulations may be published later than expected. A source said the rules could also impose licenses on exports of products to China that contain targeted chips. Dell Technologies, Hewlett Packard Enterprise and Super Micro Computer make data center servers that contain Nvidia’s A100 chip.
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A Commerce Department spokesperson declined to comment on the rules. He said the steps have been taken to prevent China from acquiring American technology and using it for military modernization to protect US national security and foreign policy interests. Jim Lewis, a technology expert at the Center for Strategic and International Studies, said the strategy aims to strangle China. America has found that chips are the choke point. China cannot make this stuff. Along with this, there are plans to add Chinese supercomputing firms to the commercial blacklist.
tags: america, China, Joe Biden
First Published: 12 September 2022, 07:20 IST