The Biden Administration Issues Sweeping New Rules on Chip-Tech Exports To China

The U.S. unveiled a set of new regulations Friday that aim to choke off China's access to advanced chips, the tools necessary to manufacture years-old designs, and the service and support mechanisms needed to keep chip fabrication systems running smoothly. From a report: On a briefing call with reporters Thursday, administration officials said the goal is to block the People's Liberation Army and China's domestic surveillance apparatus from gaining access to advanced computing capabilities that require the use of advanced semiconductors. The chips, tools, and software are helping China's military, including aiding the development of weapons of mass destruction, according to the officials, who asked to remain anonymous to discuss the administration's policies freely. The new rules are comprehensive, and cover a range of advanced semiconductor technology, from chips produced by the likes of AMD and Nvidia to the expensive, complex equipment needed to make those chips. Much of highest-quality chip manufacturing equipment is made by three U.S. companies: KLA, Applied Materials, and Lam Research, and cutting off China's access to their tools has the potential to damage the country's ambitions to become a chipmaking powerhouse. The Biden administration's new controls on chip exports represent a significant shift in U.S. policy related to China. For decades, the U.S. has attempted to keep China two generations of tech behind, typically by denying China access to the tools necessary to make advanced chips, or other technology, themselves. Now, the goal looks to be to cripple China's ability to produce chips with technology that is nearly a decade old, several generations behind the state-of-the-art capabilities.

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