Biden to attack China with more chip restrictions!

The Biden administration is planning to attack China with more restrictions on chip supply as well as chip manufacturing technology!

Biden to attack China with more chip restrictions!

Sources familiar with the matter have just revealed to Channel News Asia that the Biden administration plans to hit China with more restrictions on chip supply as well as chip manufacturing technology.

In September 2022, the U.S. Department of Commerce intends to publish new regulations for the semiconductor industry, based on:

• restrictions that previously applied only for KLA Corporation, Lam Research Corporation and Applied Material Incorporated.
• restrictions that existed Recently applied About AMD and NVIDIA

The first three US companies received letters from the US Department of Commerce explicitly prohibiting them from exporting chip-making equipment to Chinese factories that produce semiconductors smaller than 14 nanometers without special export licenses.

Separately, AMD and NVIDIA received letters informing them that they were now prohibited from selling high-performance AI chips to China (as well as Russia) without special export licenses.

In addition to those restrictions, the U.S. Department of Commerce will likely impose additional restrictions on chips from China.

The U.S. Chamber of Commerce said last week that the Commerce Department plans to add more Chinese supercomputing entities to a trade blacklist.

Read more : AMD and NVIDIA banned from selling AI chips to China!

Why Biden is imposing more restrictions on Chinese chips

The U.S. Commerce Department issued so-called “please be advised” letters to those five companies to quickly impose restrictions without going through the lengthy rule-writing process, but they would apply only to companies that receive them.

This leaves open the possibility that other companies could circumvent these restrictions or offer comparable chips or technologies to the Chinese ones as an alternative.

For example, NVIDIA is forbidden China is not allowed to sell its A100 AI chips to Chinese companies. However, China can still buy servers containing NVIDIA A100 chips from Dell Technologies, Hewlett Packard Enterprise and Super Micro Computer.

The new regulations therefore serve to codify those restrictions and apply them broadly, preventing those chips and technologies from “leaking” to China.

The Biden administration has also reached out to U.S. allies to pressure them to enact similar restrictions to prevent China from obtaining critical chips and technologies through other sources.

The move comes after the US Congress voted to pass the landmark CHIPS and Science Act, which not only provides semiconductor companies with billions of dollars in funding but also prevents them from building advanced chip factories in China.

Read more : Did China make 7nm chips despite US sanctions?

The Biden administration appears to be more aware than the Trump administration of the risks of allowing China continued access to advanced semiconductor and chip manufacturing technologies.

The Chinese government has become very belligerent and aggressive in the South China Sea, and cutting off access to advanced chips will reduce its ability to build more advanced missiles like the Dong-Feng 21 (DF-21) and YJ-12.

China is also a source of chips that Russia desperately needs to build its own advanced missiles, so these rules would prevent that possibility as well.

By blocking China's access to advanced chips, it is hoped to prevent hostilities from breaking out in Asia and force an earlier and better conclusion to Russia's invasion of Ukraine.

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