US to tighten restrictions on China's access to advanced chip technology.

Oct 16
The United States wants to push its geopolitical opponent to obtain cutting-edge technologies that could give it a military advantage, so it proposes to strengthen broad measures to restrict China's access to advanced semiconductors and chip equipment.

Speaking to the sources under the condition of anonymity because the regulations have not yet been made public, the Biden administration promised to strengthen controls on the sale of graphics processors for artificial intelligence applications and advanced chip-making equipment by Chinese companies.
Chinese chip design firms will be added to a list of trade restrictions requiring foreign manufacturers to have U.S. licenses to fill orders from the companies. The U.S. has also imposed additional checks on Chinese firms trying to get around foreign restrictions by rerouting supplies through other nations.

A year ago, the US introduced the first microchip limitations during a confrontational conference on China's technological advancement. The move, according to the Biden administration, was required for national security. China has boosted investment in enhancing its indigenous capabilities because it dislikes the limits.

For alleged flaws in the original export control system, the Biden administration has drawn criticism. Before seeking the assistance of important allies, including the Netherlands and Japan, to encourage semiconductor makers in those nations to continue to push Chinese clients, the US announced early limits.

This accomplishment shows how far China has come in advancing its indigenous technological capacity. The Chinese telecom giant Huawei Technologies Co., which is becoming more closely associated with the U.S.-China issue, revealed a brand-new smartphone in August that is equipped with a cutting-edge 7-nanometer chipset.

When the phone was disassembled, it was discovered that the chip had been developed by a strong business with manufacturing capabilities much beyond those of the US, which attempted to halt the company's advancement.

Washington's capacity to support Beijing's ambitious initiatives and exert political pressure on the Biden administration to impose extra authorization against Huawei and its chip partner, Semiconductor Manufacturing International Corp., puts that accomplishment in jeopardy.

Although the Huawei phone itself does not pose a significant threat to US national security, Gregory Allen, director of the Wadhwani Center for Artificial Intelligence and Advanced Technologies in the US, claimed that the chip within the phone "conveys a signal about the state of the modern semiconductor industry."

According to a paper from the Center for Strategies and International Studies, if the Chinese military does not already have access to these cutting-edge chip manufacturing skills, they will certainly do so. As a result, the breakthrough by Huawei and SMIC poses several challenging issues regarding the state of the US economy.

According to U.S. sources familiar with the guidelines, the amended regulations do not impose limitations on Chinese enterprises' access to government services or associated cloud computing services. The administration is looking for feedback to better understand the possible threats to national security posed by this access and the options for severely limiting it.

The US has also lured Taiwanese chip giant Taiwan Semiconductor Manufacturing Co., South Korean companies Samsung Electronics Co. and SK Hynix Inc., and the opportunity to keep supplying some limited chip manufacturing technology to its facilities in China.

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