Biden Administration Set to Announce New Semiconductor Export Restrictions Targeting China's AI Industry

Reporter Kim Jisun / approved : 2024-12-03 03:13:57
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Photo = Yonhap news

 

[Alpha Biz= Reporter Kim Jisun] The Biden administration is expected to unveil a third round of export restrictions on China's semiconductor industry on December 2, U.S. time. The measures reportedly include prohibitions on exporting high-bandwidth memory (HBM) chips to hinder the development of China's artificial intelligence (AI) sector. This move is anticipated to affect South Korean firms like Samsung Electronics and SK Hynix.

According to Reuters, citing informed sources, the U.S. government plans to restrict exports to 140 Chinese companies, including semiconductor equipment manufacturers such as Naura Technology, Piotech, and Sicaria. This action is part of broader measures to prevent China from developing military-grade AI capabilities or producing semiconductors that could threaten U.S. national security.

Under these restrictions, American companies must obtain special licenses to export goods to the targeted Chinese firms.

The sanctions target 24 Chinese semiconductor firms, two investment firms, and over 100 semiconductor equipment manufacturers. Companies supplying products to Huawei, including SeneWish, Qingdao Xian, and Shenzhen Pengsun, are also included. Although an initial plan to sanction all suppliers to Huawei was considered, some companies were excluded during deliberations.

The measures underscore the Biden administration's commitment to curbing China's technological advancements in sensitive industries while safeguarding U.S. national interests.

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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