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Reuters Says Biden Launching New Semiconductor Sanction Campaign Against China

The Biden Administration is starting a company-by-company sweep prohibiting export to China of chip-making equipment capable of manufacturing semiconductor chips below 14 nanometers size, according to Reuters claiming an “exclusive” today. It says the Commerce Department has begun issuing individual orders to companies not to export, beginning with three companies named in Reuters report – KLA Corp, Lam Research Corp, and Applied Materials, Inc.

The Commerce Department intends to publish new regulations in October stopping such export. But regulations require a period of public comment. So meanwhile it has simply sent what are called “is informed” letters to the corporations “prohibiting them,” the companies admit, from exporting chipmaking equipment if it is going to be used in making semiconductors below the 14 nanometer size. The Commerce Department has also notified Nvidia Corp and Advanced Micro Devices by letters, that they must halt shipments of chips that are used in artificial intelligence applications. The U.S. Chamber of Commerce has informed all its relevant member companies to expect such “is informed” letters.

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