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The United States is looking to tighten chip export rules to China

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Although this news has not been officially confirmed yet; But Reuters reports that Joe Biden’s administration is preparing to implement a new set of sanctions that would halt exports of semiconductors with a scale of less than 14 nanometers and capabilities for artificial intelligence, as well as chip-making tools.

The US Department of Commerce previously cooperated with China for a number of large industrial companies that are active in the field of selling chips to companies based in this country; has sent warning letters. Some of these companies such as Nvidia, AMD and Intel have publicly confirmed the receipt of such letters; But most officials refuse to comment on this matter. The content of these letters appears to be very similar to the current restrictions, which require US companies to do business with Chinese parties only after obtaining permission from the Department of Commerce.

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The implementation of these letters is considered a common procedure and the quick implementation of their provisions will be required. However, only the companies receiving the letter are required to comply with the provisions stated in it. At the same time, the Ministry of Commerce, in cooperation with the Biden administration, is drafting laws to apply to the entire industry, and it is expected that these laws will be officially announced next month.

Some experts believe that as a result of the implementation of the new rules, even American companies using such chips will be denied access to the Chinese market. HP, Dell and Super Micro Computer are among these companies.

This law, if implemented, will be troublesome for China; Because despite technological advances and manufacturing capabilities, none of the Chinese companies still have the knowledge or tools to produce modern, competitive chips on a significant scale. Currently, this industry is dominated by America, Taiwan and South Korea. Therefore, this ban is likely to significantly intensify the pressure on Chinese companies.

In order to increase the effectiveness of these bans, Joe Biden’s administration will seek the support of its allies outside the United States.

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Adib

Adib Zahedi is the CEO and Founder of mazhd.com. He has nearly a decade of experience in IT, including two years spent working on a Youtube Chennal. He is also an author and writes articles for mazhd.com. Has articles include tutorials and covers everything from Windows PCs to smartphone's software.

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