US to increase chip restrictions on China

The US plans to tighten the measures it implemented last year to restrict access to advanced semiconductors and chip-making equipment, aiming to prevent China from obtaining the latest technologies that could provide it with a military advantage.

According to sources familiar with the matter, the new restrictions aim to correct and close loopholes in previously announced regulations. According to the sources, the Biden administration is seeking to strengthen controls on the sale of graphics chips for artificial intelligence applications and advanced chip manufacturing equipment to Chinese firms.

The US will also implement additional controls on Chinese firms attempting to evade export restrictions by routing shipments through other countries. The addition of Chinese chip design firms to a trade restriction list, which would require overseas manufacturers to obtain a US license to fulfill orders from these companies, is also on the agenda.

The Biden administration announced chip restrictions on China last year, stating they were necessary for national security. Following the restrictions, China also accelerated investments aimed at developing its own domestic production.