US to Broaden Curbs on Semiconductor Shipments to China

The U.S. regulators expect to broaden restrictions on semiconductors used in artificial intelligence shipments to China beginning next month, Reuters reported Sunday.

New regulations are going to be published by the Commerce Department based on restrictions that were sent in letters earlier this year to three American companies: KLA, Lam Research, and Applied Materials, people familiar with the matter said.

The letters prohibited them from exporting chipmaking equipment to Chinese factories that manufacture advanced semiconductors using sub-14 nanometer techniques unless they received Commerce Department permits.

Last month, Nvidia and Advanced Micro Devices had been told by the U.S. government to stop selling chips in China and Russia. The suspension of sales to China includes two top computing chips for artificial intelligence work, which could cripple Chinese firms from technology such as image and speech recognition. 

According to one source, the restrictions could potentially impose license requirements on exports of items using the targeted chips to China. Dell Technologies, Hewlett Packard Enterprise, and Super Micro Computer all manufacture data center servers that use Nvidia’s A100 processor.