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The United States may further tighten restrictions on China's access to chip technology crucial for artificial intelligence (AI), Bloomberg reported on Tuesday.
Bloomberg reported, citing sources familiar with the matter, that the Biden administration is considering measures to target a high-tech chip architecture called gate-all-around, a new transistor architecture that could lead to better performance and lower power consumption.
South Korea's Samsung Electronics has already begun producing 3-nanometer chips using GAA technology, and Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning to include GAA in its upcoming 2-nanometer chips.
Shares in TSMC and Samsung Electronics rose 1.6% and 0.4%, respectively, in morning trading in Asia on Wednesday.
Bloomberg reported that sources said the US was still “determining the scope of the potential restrictions” and it was not immediately clear when that process would be completed. The US measures aim to make it harder for China to build the advanced computing systems needed to build and run AI models, the report said.
The US Department of Commerce and the Bureau of Industry and Security, which oversees export controls, did not immediately respond to CNBC's request for comment.
The US passed a series of export controls aimed at restricting Chinese access to advanced chip technology, particularly that used in AI applications, starting in October 2022. It then further tightened restrictions on AI chip exports to China last October, seeking to halt shipments of more advanced chips from Nvidia and other companies.
Bloomberg reported that the proposed GAA restrictions were deemed “overly broad”, adding that it was unclear whether the measures would target Chinese GAA developments or ban foreign companies from selling to China.
In May, China pumped 344 billion yuan ($47.5 billion) into a third semiconductor fund in what was seen as a move to promote “scientific and technological independence.” The move comes as countries such as the United States and the Netherlands seek to rein in China's technological prowess.
Earlier this year, the Dutch government banned semiconductor manufacturing equipment maker ASML from exporting some of its equipment to China.
Read the full report at Bloomberg.
