The step by the Biden Administration could potentially come as soon as next month, likely further escalating the friction between both countries.
US President Joe Biden may widen the curbs in place related to shipments of semiconductors to China that are used for artificial intelligence and chip-making tools, the news agency Reuters reported (registration required) Monday, citing several sources familiar with the matter.
According to the service, the US Commerce Department intends to release new regulations based on the restrictions that had been directly communicated to numerous North American companies earlier this year by letter.
Two Groups
Several companies have publicly acknowledged the communication, which indicates a double-pronged approach by the US government.
KLA, Lam Research, and Lam Materials were told earlier this year that they were not allowed to export chipmaking equipment to factories in China that produce advanced semiconductors unless they obtained licenses from the US government first. Nvidia and AMD were subsequently told to stop shipping artificial intelligence chips last month.
Further Action
According to the sources, which requested anonymity before speaking, the new regulations may also include additional action against China, but that they are also subject to change and delay.
If the information proves to be accurate, it is likely to serve to further increase trade friction between the US and China as well as heighten geopolitical tension related to Taiwan and the South China Sea.
