) fell in early trading Tuesday as new rules from the Biden administration will make it harder for China to buy AI and other advanced U.S. chips.
The objective of the move is to address apparent weaknesses in export controls that were introduced a year ago. These controls had previously encountered significant resistance from the global semiconductor industry and heightened tensions with Beijing. The new rules will further restrict China's “access to advanced semiconductors that could fuel breakthroughs in artificial intelligence and sophisticated computers," Commerce Secretary Gina Raimondo told reporters.
The Semiconductor Industry Association, a U.S. chip industry association, strongly criticized the regulations in a statement. The group expressed concerns that these overly broad, unilateral controls could potentially damage the U.S. semiconductor ecosystem and might not effectively enhance national security, as they could lead foreign customers to seek alternative sources.Comment Guidelines
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