US tightens restrictions on China's access to crucial chipmaking components and AI technologies
From Investing.com: 2024-12-02 05:28:05
The Biden administration tightens restrictions on China’s access to crucial chipmaking components and AI technologies, aiming to limit Beijing’s technological advancements. New rules include stricter controls on the sale of HBM chips and chipmaking equipment, with 140 Chinese entities blacklisted for advancing Beijing’s goals, though not yet identified.
The regulations, less severe than earlier drafts, boosted semiconductor suppliers globally, including Tokyo Electron Ltd. and ASML Holding. The administration seeks to impede China’s development of advanced semiconductors and AI systems to enhance military capabilities. Details of the latest sanctions and Entity List additions will be revealed soon.
The US plans to limit China’s production of key military and human rights repression technologies through restrictions on semiconductor fabs, tool companies, and investment firms. Major semiconductor companies lobbied for a balance between market access and security concerns during negotiations with foreign governments over the past year.
New rules target two dozen types of manufacturing equipment and three software tools, with exemptions for capable countries like Japan and the Netherlands encouraged to adopt similar policies. The FDPR prevents US toolmakers from bypassing trade restrictions by shifting production overseas, a key provision in these measures.
US exports to China from non-US locations have grown significantly since 2016, prompting the Biden-Harris administration’s targeted approach to impair China’s ability to produce advanced technologies. The latest restrictions also cover HBM chips crucial for AI applications, including HBM2 and newer chips from providers like SK Hynix, Micron Technology, and Samsung Electronics.
Secretary of Commerce Gina Raimondo emphasizes the administration’s strategic approach to addressing China’s military modernization through export controls, asserting the toughest stance yet. The measures aim to prevent Chinese firms from gaining access to advanced technologies that could threaten national security, including restrictions on HBM chips for AI applications.
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