Not Just Huawei: US to Broaden Chip Export Restrictions to China

Not Just Huawei: US to Broaden Chip Export Restrictions to China

It’s no secret how Huawei has been affected by the US trade ban, as it cannot use 5G technology on all of its phones including its flagship models. If that’s not enough, the US is planning to broaden its chip export restrictions to China, according to a report by Reuters.

In the latest set of regulations imposed by the US Commerce Department, a letter was sent to three US companies, namely KLA Corp., Lam Research Corp., and Applied Materials Inc., that they “cannot export chipmaking equipment to Chinese factories that produce advanced semiconductors with sub-14 nanometer processes unless the sellers obtain Commerce Department licenses.”

The new chip export restrictions also apply to AMD and NVIDIA, where they were ordered last month to “halt shipments of several artificial intelligence computing chips to China unless they obtain licenses.” With AMD and NVIDIA included in the revised regulation rules, it seems that the US is trying to put in all stops to prevent companies–especially Chinese companies–to challenge AMD and NVIDIA’s dominance in producing AI chips.

The extent of the new regulations also covers companies like HP, Dell, and Super Micro Computer, who manufacture data centers using NVIDIA’s A100 chip. HP and Dell, along with Intel, are monitoring the situation, while Super Micro Computer and Cerebras Systems declined to comment.

All of these new developments come at a time when President Joe Biden aims to regulate China’s advances “by targeting technologies where the United States still 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,” Center for Strategic and International Studies Technology expert Jim Lewis said. “That will change.”

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