US Imposes Stricter Limits on Semiconductor Sales to China, Hindering AI Advancement

Benzinga 2023-10-18

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The US announced additional limits on sales of advanced semiconductors to China by American firms, expanding restrictions issued in October 2022 to limit China's progress on supercomputing and artificial intelligence. The new rules will require more US companies seeking to sell China advanced chips, or chip-making equipment, to notify the government, or obtain a special license. Licenses will also be required to ship certain chips to over 40 countries subject to US arms embargoes, to prevent chips from reaching China through third countries. The rules are expected to halt most US chip shipments to Chinese data centers and weaken China's AI development, though some exemptions are made for commercial chips in devices.

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