Biden Administration Tightens Trade Restrictions on AI Chip Exports

The Biden administration has placed over a dozen Chinese entities, including Sophgo, on its restricted trade list. Sophgo drew attention after its involvement in an AI chip linked to Huawei. The U.S. also strengthened export restrictions on advanced computing semiconductors to limit China's technological advancements.

The Biden administration has added more than a dozen Chinese entities to its restricted trade list, focusing on a company whose chip was used in a Huawei AI processor. The move signals an increased effort to curb Beijing's technological advancements.

Sophgo, linked to the high-profile case, is among those added to the U.S. Commerce Department's Entity List. These companies face a harsh ban on receiving technology exports without a specific license, generally declined. Sophgo's chip was discovered in Huawei's Ascend 910B multi-chip AI system, raising alarms about its link to Taiwan Semiconductor Manufacturing Co.

The U.S. simultaneously widened restrictions on advanced semiconductors for AI use, affecting chipmakers like Samsung and TSMC. The rules target chip nodes at 14 or 16 nanometers, imposing strict conditions to prevent their reach to China, complicating matters for companies like Changxin Memory Technologies.

(With inputs from agencies.)