The administration of US President Joe Biden next month is to broaden curbs on US exports to China of semiconductors used for artificial intelligence and chipmaking tools, several people familiar with the matter said.
The US Department of Commerce intends to publish new regulations based on restrictions communicated in letters earlier this year to three US companies — KLA Corp, Lam Research Corp and Applied Materials Inc, the people said, speaking on the condition of anonymity.
The letters, which the companies publicly acknowledged, forbade them from exporting chipmaking equipment to Chinese factories that produce advanced semiconductors with sub-14 nanometer processes unless the sellers obtain commerce department licenses.
Photo: EPA-EFE
The rules would also codify restrictions in department letters sent last month to Nvidia Corp and Advanced Micro Devices (AMD) instructing the firm to halt shipments of several artificial intelligence computing chips to China unless they obtain licenses.
Some of the sources said the regulations would likely include additional actions against China. The restrictions could also be changed and the rules published later than expected.
So-called “is informed” letters allow the commerce department to bypass lengthy rule-writing processes to put controls in place quickly, but the letters only apply to companies that receive them.
Turning the letters into rules would broaden their reach and could subject other US companies producing similar technology to the restrictions. The regulations could potentially apply to companies trying to challenge Nvidia and AMD’s dominance in artificial intelligence chips.
Intel Corp and start-ups such as Cerebras Systems are targeting the same advanced computing markets. Intel said it is closely monitoring the situation, while Cerebras declined to comment.
One source said the rules could also impose license requirements on shipments to China of products that contain the targeted chips. Dell Technologies, Hewlett Packard Enterprise and Super Micro Computer make data center servers that contain Nvidia’s A100 chip.
Dell and Hewlett Packard said they were monitoring the situation, while Super Micro Computer did not comment.
A spokesperson for the Commerce Department on Friday said that it is “taking a comprehensive approach” to “protect US national security and foreign policy interests,” including preventing China from acquiring US technology applicable to military modernization.
Liu Pengyu (劉鵬宇), a spokesman for the Chinese embassy in Washington, on Tuesday said that China opposes the “abuse of export control measures to restrict the export of semiconductor-related items to China.”
The upcoming restrictions contravene international trade rules, harm global growth and hurt US and Chinese companies, he said.
The planned action comes as Washington has sought to thwart China’s advances by targeting technologies where the US maintains dominance.
“The strategy is to choke off China, and they have discovered that chips are a choke point. They can’t make this stuff, they can’t make the manufacturing equipment,” said Jim Lewis, a technology expert at the Center for Strategic and International Studies.
In an update on China-related measures last week, the Chamber of Commerce, a US business lobbying group, warned members of imminent restrictions on AI chips and chipmaking tools.
“We are now hearing that members should expect a series of rules, or perhaps an overarching rule prior to the mid-term election, to codify the guidance in recently issued ‘is-informed’ letters to chip equipment and chip design companies,” the chamber said.
The group also said the agency plans to add additional Chinese supercomputing entities to a trade blacklist.
The Biden administration has been actively discussing banning exports of chipmaking tools to Chinese factories that make advanced semiconductors at the 14 nanometer node and smaller.
Tech news outlet Protocol last month reported plans to turn the letters sent to toolmakers into a regulation.
US officials have reached out to allies to lobby them to enact similar policies so that foreign companies would not be able to sell technology to China that US firms would be barred from shipping, two of the sources said.
“Coordination with allies is key to maximizing effectiveness and minimizing unintended consequences,” former White House trade official Clete Willems said. “This should favor broader regulations that others can replicate instead of one-off ‘is informed’ letters.”
Taiwan yesterday denied Chinese allegations that its military was behind a cyberattack on a technology company in Guangzhou, after city authorities issued warrants for 20 suspects. The Guangzhou Municipal Public Security Bureau earlier yesterday issued warrants for 20 people it identified as members of the Information, Communications and Electronic Force Command (ICEFCOM). The bureau alleged they were behind a May 20 cyberattack targeting the backend system of a self-service facility at the company. “ICEFCOM, under Taiwan’s ruling Democratic Progressive Party, directed the illegal attack,” the warrant says. The bureau placed a bounty of 10,000 yuan (US$1,392) on each of the 20 people named in
A Chinese aircraft carrier group entered Japan’s economic waters over the weekend, before exiting to conduct drills involving fighter jets, the Japanese Ministry of Defense said yesterday. The Liaoning aircraft carrier, two missile destroyers and one fast combat supply ship sailed about 300km southwest of Japan’s easternmost island of Minamitori on Saturday, a ministry statement said. It was the first time a Chinese aircraft carrier had entered that part of Japan’s exclusive economic zone (EEZ), a ministry spokesman said. “We think the Chinese military is trying to improve its operational capability and ability to conduct operations in distant areas,” the spokesman said. China’s growing
The High Court yesterday found a New Taipei City woman guilty of charges related to helping Beijing secure surrender agreements from military service members. Lee Huei-hsin (李慧馨) was sentenced to six years and eight months in prison for breaching the National Security Act (國家安全法), making illegal compacts with government employees and bribery, the court said. The verdict is final. Lee, the manager of a temple in the city’s Lujhou District (蘆洲), was accused of arranging for eight service members to make surrender pledges to the Chinese People’s Liberation Army in exchange for money, the court said. The pledges, which required them to provide identification
Nine retired generals from Taiwan, Japan and the US have been invited to participate in a tabletop exercise hosted by the Taipei School of Economics and Political Science Foundation tomorrow and Wednesday that simulates a potential Chinese invasion of Taiwan in 2030, the foundation said yesterday. The five retired Taiwanese generals would include retired admiral Lee Hsi-min (李喜明), joined by retired US Navy admiral Michael Mullen and former chief of staff of the Japan Self-Defense Forces general Shigeru Iwasaki, it said. The simulation aims to offer strategic insights into regional security and peace in the Taiwan Strait, it added. Foundation chair Huang Huang-hsiung
RSS