US plans to limit semiconductor exports to China

The United States plans to cut shipments of some semiconductors and equipment needed for their production to China next month, media reports Sunday.

The U.S. Commerce Department plans to issue new rules based on letters sent earlier this year to U.S. companies, Reuters said, citing several people familiar with the matter.

Letters have been sent to KLA, Lam Research and Applied Materials notifying them that they are prohibited from exporting equipment needed to produce advanced semiconductors to Chinese factories unless they obtain a permit from the Commerce Department.

Other letters, sent by the Department of Commerce to Nvidia and Advanced Micro Devices, asked these companies to stop deliveries of chips used in the development of artificial intelligence to China, adds the same source.

Some of the sources also indicated, according to Reuters, that the new regulations would contain other rulings relating to China.

Restrictions may still be subject to change, and new regulations may be introduced later than expected.

One of the sources also explained that under the new rules, permits may be required to export products containing the semiconductors subject to the sanctions, according to Reuters.

With MAP

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