US announces new rules to restrict flow of next-generation chips to China

by Andrea
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The US announced a new round of regulations aimed at preventing advanced chips made by TSMC and other manufacturers from reaching China, in a latest attempt by the Biden administration to fill gaps in the technological blockade on its geopolitical rival.

The new measures require chipmakers like TSMC and Samsung to step up their oversight of customers, especially Chinese companies. This is an acknowledgment that advanced semiconductors are still reaching China and Russia, including an incident where chips made by TSMC were secretly diverted to Huawei, which is on the ban list.

The restrictions unveiled Wednesday impose sanctions on 16 Chinese companies that are “acting at the behest of Beijing” to build the country’s chip industry, the Commerce Department said in a news release. The list includes Sophgo, which was allegedly involved in Huawei’s access to TSMC chips last year.

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The U.S. is also expanding licensing requirements for foundries — companies like TSMC that make chips for external customers — and packaging companies looking to export advanced semiconductors, according to the statement. The stricter rules apply unless the chips are for “trusted” customers who prove the processors are below a set performance threshold, or if the chips are packaged by approved assemblers who verify their technological capabilities.

“These rules further aim to strengthen our controls to help ensure that the PRC and others who seek to circumvent our laws and undermine U.S. national security fail in their efforts,” Commerce Secretary Gina Raimondo said in a statement Wednesday. fair, referring to the People’s Republic of China. “We will continue to protect our national security by restricting access to advanced semiconductors, aggressively enforcing our rules, and proactively addressing new and emerging threats.”

The Biden administration is trying to cement its legacy of restricting the flow of advanced technologies to China in its final days in power. The Democratic team unveiled rounds of sweeping controls on the country’s access to chips and artificial intelligence and released a series of last-minute rules before handing over power on Jan. 20.

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On Monday (13), the US published restrictions limiting the sale of AI chips by companies like Nvidia and other advanced manufacturers to data centers in most countries. The due diligence measures apply to semiconductor exports covered by these global restrictions.

The rules for AI chips follow controls announced in December that aim to cut off Beijing’s access to high-bandwidth memory chips, which are essential components of AI. Wednesday’s regulations include some updates to those previous measures.

© 2025 Bloomberg L.P.

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