US hits China’s chip industry with new export controls

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Parting measures by Biden administration aim to slow Beijing’s development of AI with military applications

The US has introduced new export controls in an effort to curtail China’s ability to create an advanced semiconductor industry and to slow its development of artificial intelligence with military applications. The restrictions on the export of key manufacturing tools will affect both US companies and foreign firms that use American technology in their chipmaking equipment. The US will also prevent the export of advanced high bandwidth memory , a critical component in AI chips, to China.

One person familiar with the rules said the US had carved out an FDPR exemption for Japan and some European allies, including the Netherlands, after they agreed to apply their own export restrictions. South Korea has not yet secured an exemption, but could later. One US official said the FDPR would make it harder for US groups to circumvent existing controls by producing tools in other countries — such as Singapore and Malaysia — for export to China.

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