suppliers will face new hurdles in selling technologies to those entities. Separately, Commerce added more names to a list of companies that it regards as “unverified,” meaning it doesn’t know where their products end up being used. The officials declined to characterize how advanced the negotiations are or how likely they are to result in similar actions in key countries, such as the Netherlands and Japan. is home to the biggest block of companies that design vital electronic components – and provide the complex machinery needed to manufacture them – but other regions have capabilities that could undermine some of the government’s efforts.Ĭommerce Department officials acknowledged that overseas cooperation is necessary to avoid hampering the initiatives and said there are talks with other parties underway around the world on the topic. While there will be more latitude for overseas companies needing technology for their own operations in China – or for parties that can prove they’re making things there for immediate export elsewhere – Commerce said it will enforce the rules and also cut off support for existing deployments of machinery covered by the restrictions. It’s going after the types of memory chips and logic components that are at the heart of state-of-the-art designs. machinery that’s capable of making advanced semiconductors. They should presume requests will be denied, according to senior Commerce Department officials.Ĭommerce also put a raft of restrictions on supplying U.S. When the new rules come into force, it will be harder for providers of chips used in Chinese supercomputers and supercomputer-related gear to get permission to fill orders. Shares of many of the world’s biggest semiconductor makers tumbled on Friday following reports that the slump may be even worse than thought. The new rules are coming at a difficult time for the chip industry, which is suffering a steep drop in demand for personal computer and smartphone components. technological leadership is about values as well as innovation.” national security and foreign policy interests while also sending a clear message that U.S. “It is using these capabilities to monitor, track, and surveil their own citizens, and fuel its military modernization. Washington is looking to ensure that Chinese companies don’t act as a conduit for the transfer of technology to their country’s military – and that chipmakers there don’t develop the capability to make advanced semiconductors themselves.Ĭhina “has poured resources into developing supercomputing capabilities and seeks to become a world leader in artificial intelligence by 2030,” said Assistant Secretary of Commerce for Export Administration Thea D.
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