US plans new restrictions on exports of chips, chipmaking tools to China: report

The Biden administration plans to expand export restrictions on US chip companies to China, according to a new report.

Reuters reported On Sunday night, the new restrictions on AI semiconductors and chip-making tools would build on restrictions issued earlier this year in letters to KLA Corp.
KLAC,
+2.16%
,
Lam Research Corp.
LRCX,
+2.65%

and Applied Materials Inc.
AMAT,
+2.90%
.

The restrictions bar those companies from exporting semiconductor equipment to Chinese chipmakers that produce processes below 14 nanometers unless they are first approved by the Commerce Department, according to Reuters.

Read also: 12 Semiconductor Stocks Bucking the Downtrend

The report says the new curbs will be as well codifying the restrictions sent last month to Nvidia Corp.
NVDA,
+2.84%

and Advanced Micro Devices Inc.
AMD,
+3.23%

against sending certain AI chips to China. Shares of Nvidia sank to a 52-week low after disclosure of limitations.

The broader restrictions could affect a number of other major technology companies, including Intel Corp.
INTC,
+2.31%
,
Dell Technologies Inc.
Dell,
+3.35%

and Hewlett-Packard Enterprise Co.
HPE,
+1.44%
,
according to the report.

Reuters also said other restrictions could be added.

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