US Tightens Export Controls on Advanced Chips Amid China's Tech Progress

U.S. rolls out new chip-related export controls as China makes industry advances

Digitally Generated ImagesWong Yu Liang | Moment | Getty Images The Biden administration is rolling out new export controls on critical technologies, including quantum computing and semiconductor goods, as China makes advances in the global chips industry. Released by the U.S. Department of Commerce on Friday, the rules cover quantum computers and components; advanced chipmaking tools; some components and software related to metals and metal alloy; as well as high-bandwidth chips, a critical component for AI applications. The department cited "national security and foreign policy reasons" for the move, and said it was the product of extensive discussions with international partners. These restrictions cover worldwide exports, but adds exemptions for countries that add similar controls, such as Japan and the Netherlands have done in the past. The department's Bureau of Industry and Security (BIS) expects more countries will move to impose similar measures. "Today's action ensures our national export controls keep step with rapidly evolving technologies and are more effective when we work in concert with international partners," Alan Estevez, under secretary of the bureau, said in a statement. "Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security," he added. Officials will hold a 60-day public comment period before issuing a final ruling. Along with semiconductors, both China and the U.S. seek to be leaders in quantum computing, which they see as a potentially transformative technology. Though China is not explicitly named in the documents, the controls are in line with a series of moves the Biden administration has taken to limit Beijing's developments in areas such as AI and computing. BIS also said it is also continuing to strengthen relationships with its allies to boost the effectiveness of export controls aimed at degrading Russia's military capabilities, as well as its "enablers" such as Belarus and Iran.

U.S. rolls out new chip-related export controls as China makes industry advances

A semiconductor manufacturing facility in Malta, N.Y., in June.Cindy Schultz / Bloomberg via Getty Images The Biden administration is rolling out new export controls on critical technologies, including quantum computing and semiconductor goods, as China makes advances in the global chips industry. Released by the U.S. Department of Commerce on Friday, the rules cover quantum computers and components; advanced chipmaking tools; some components and software related to metals and metal alloy; as well as high-bandwidth chips, a critical component for AI applications. The department cited "national security and foreign policy reasons" for the move, and said it was the product of extensive discussions with international partners. These restrictions cover worldwide exports, but include exemptions for countries that add similar controls, as Japan and the Netherlands have done in the past. The department's Bureau of Industry and Security (BIS) expects more countries will move to impose similar measures. "Today's action ensures our national export controls keep step with rapidly evolving technologies and are more effective when we work in concert with international partners," Alan Estevez, under secretary of the bureau, said in a statement. "Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security," he added. Officials will hold a 60-day public comment period before issuing a final ruling. Along with semiconductors, both China and the U.S. seek to be leaders in quantum computing, which they see as a potentially transformative technology. Though China is not explicitly named in the documents, the controls are in line with a series of moves the Biden administration has taken to limit Beijing's developments in areas such as AI and computing. BIS said it is also continuing to strengthen relationships with its allies to boost the effectiveness of export controls aimed at degrading Russia's military capabilities, as well as its "enablers" such as Belarus and Iran. Amid increased restrictions and tech sanctions from Washington, Beijing has ramped up its self-sufficiency push, setting up billions in investments in critical technologies to strengthen its chip-making industry. A recent analysis of China's semiconductor technology by Tokyo-based semiconductor research company TechanaLye found that Chinese-made processor chips are approaching a level just three years behind the industry leader, Taiwan Semiconductor Manufacturing Co Ltd, according to Nikkei Asia. As the U.S. continues to step up controls, the global industry has shown a degree of reluctance. China is the largest semiconductor market in the world, and its firms remain key clients of many of the world's leading semiconductor companies, including those in the U.S. On Wednesday, the chief executive of Dutch chip equipment giant ASML, which is restricted from providing its industry-leading advanced semiconductor equipment to China, reportedly said that the U.S.-led restrictions have become more "economically motivated" over time, adding that he expects more pushback. The Dutch government has said it will take ASML's economic interests into account when deciding whether to tighten semiconductor export rules further. Meanwhile, South Korean Trade Minister Cheong Inkyo reportedly said this week that the U.S. should offer more incentives if it wants Seoul to comply with additional export curbs on China's semiconductors. Beijing has long maintained that the U.S. and its allies' chip restrictions are anti-competitive and hurt the global semiconductor supply chain.

U.S. ramps up export controls on chips to curb China's tech advances

The U.S. has released its latest set of export controls on critical technologies as it steps up its efforts to curb China's technological advances. The new export controls cover quantum computing, aerospace technology, and semiconductors, which "warrant export controls because of national security concerns," the U.S. Department of Commerce's Bureau of Industry and Security (BIS) said. The rules, which were released Friday and don't explicitly name certain countries, "are the product of extensive discussions with international partners," and are being adopted as military applications enabled by critical technologies "emerge and evolve," said BIS. "Today's action ensures our national export controls keep step with rapidly evolving technologies and are more effective when we work in concert with international partners," Alan Estevez, under secretary for the BIS, said in a statement. "Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security." Components for quantum computing and advanced chipmaking tools, as well as high-bandwidth chips that are essential to artificial intelligence technology, are part of the restrictions, which will impact global exports. However, countries including Japan and the Netherlands are exempt from the restrictions because of similar existing export controls. Equipment and technology designed for producing metal or metal alloy components are also included in the restrictions. "Several like-minded countries" have announced or implemented export controls covering quantum computing and advanced chip manufacturing, the BIS said, adding that it expects "additional countries will implement similar controls soon." U.S. officials will issue a final ruling on the new export controls after a 60-day public comment period. Meanwhile, the Dutch government announced it is expanding export control measures related to advanced semiconductor manufacturing equipment, specifically deep ultraviolet lithography equipment, which is manufactured by Netherlands-based ASML. The change announced Friday gives the Dutch government control over ASML's exports of its machines to other countries, which the U.S. had done. "I've made this decision for reasons of security," Dutch Minister for Foreign Trade and Development Reinette Klever said in a statement. "We see that technological advances have given rise to increased security risks associated with the export of this specific manufacturing equipment, especially in the current geopolitical context."

Biden Administration Rolls Out Tighter Chip Export Controls Amid China's Industry Progress

President Joe Biden's administration is rolling out new tighter export controls on various technologies that include semiconductors and quantum computing in response to China's growing influence in the global chip industry. Authorities have attributed the move to "national security and foreign policy reasons." On Thursday, the U.S. Commerce Department's Bureau of Industry and Security (BIS) released new rules that would impose better export controls on quantum computers, related equipment and components; high-bandwidth chips that are vital in the making of AI applications; equipment, components and related technology and software designed to produce metal or metal alloy components; as well as advanced chipmaking tools. According to the department, there was a thorough discussion with international partners before it came up with the new rules, CNBC reported. The new restrictions cover worldwide exports but include exemptions for countries like Japan and the Netherlands that have similar controls. The Bureau of Industry and Security expects that similar measures will be adopted by more countries. "Today's action ensures our national export controls keep step with rapidly evolving technologies and are more effective when we work in concert with international partners," Alan Estevez, Under Secretary for the Bureau of Industry and Security, said in a press release. "Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security," he added. Officials said that there will be a 60-day comment period during which they will monitor feedback before a final ruling. The move comes as Beijing is making bold moves to be a leader in quantum computing and semiconductors. Though China is not categorically mentioned in the documents, the restrictions mirror those imposed by the Biden administration aimed at limiting China's development in artificial intelligence and computing, the report said. Despite the tech sanctions and increased restrictions, China has ramped up its efforts to gain a competitive edge in critical technology development, investing billions to strengthen its position in the chip-making industry.

US Rolls Out New Export Controls of Advanced Tech

The U.S. plans to implement new export controls on advanced technologies, including quantum computing and semiconductor goods, as it continues to target demand from China, the Commerce Department said. The move comes after the U.S. already imposed export controls on advanced semiconductor chips aimed at curbing China's access. Such curbs have already made it harder for American firms like Nvidia (NVDA) and Intel (INTC) to sell artificial-intelligence (AI) chips to China. Friday's controls, made for "national security and foreign policy reasons" according to the text of the proposed rule, are reportedly set to cover worldwide exports but exempt some nations such as Japan and the Netherlands, home of chipmaking equipment provider ASML Holding (ASML). The curbs cover the export of quantum computing items, advanced semiconductor manufacturing equipment, technology that produces high-performance computing chips that can be used in supercomputers and components designed to produce metal or metal alloy components. There will be a 60-day public comment period before the government issues its final rules.

The U.S. will impose new export controls on quantum computing to stop China getting access to cutting-edge tech

The Biden administration plans to impose export controls on critical technologies including quantum computing and semiconductor goods, aligning the U.S. with allies working to thwart advancements in China and other adversarial nations. The rules target quantum computers and components, advanced chipmaking tools, a cutting-edge semiconductor technology called gate all-around, and various components and software related to metals and metal alloys. They cover all worldwide exports, but include exemptions for countries that implement similar measures. That group includes Japan and the Netherlands, among other allies, and the U.S. anticipates that more nations will follow, the Commerce Department said in a press release. Washington has been cracking down for years on China and other adversaries' ability to access cutting-edge technologies needed for artificial intelligence, over fears that advanced chips and components could lend Beijing a military edge. The promise of more lenient license approvals offers an incentive for countries to join the U.S. camp, given American leadership in a range of academic fields and research partnerships. The U.S. effort has included unilateral measures that Washington has tried to coordinate with a handful of key allies -- such as sweeping semiconductor export controls first imposed in 2022 -- as well as restrictions negotiated through a broader international framework, like those issued Thursday. "Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security," Alan Estevez, who runs the Commerce Department's Bureau of Industry and Security, said in a statement. The U.S. and China are leading a global push by governments to explore quantum computing, which some argue will revolutionize technology. While local experts have expressed concern about the impact of Washington sanctions on Beijing's efforts in quantum technology, it's still too early to tell whether they're significantly disrupting research in China. Years away from delivering world-changing performance, quantum computers promise speeds millions of times faster than classical computers. Countries around the world are investing billions of dollars in quantum computers partly out of fear about the military and economic advantages they may yield. Thursday's action opens a 60-day public comment period before officials issue a final rule. The U.S. has separately been working on a new package of chip-related export controls that would target China's access to so-called high-bandwidth memory chips, an essential AI component, as well as a range of semiconductor manufacturing tools, Bloomberg has reported. That effort includes measures with a global focus -- but with exemptions for key allies including Japan and the Netherlands, home to two of the most important companies in the chip supply chain. Washington is pressuring Tokyo and the Hague to adopt similar rules, but has faced pushback from both governments, who are reluctant to harm their champion companies -- and in Japan's case, fearful of retaliation from China. Both Japan and the Netherlands have already imposed some restrictions aligning with the original US rules in 2022, but with key differences that have frustrated American companies. Washington is working to close those gaps -- with some recent progress in the Netherlands -- and pursue a multilateral strategy on the latest potential measures.

US rolls out more tech export restrictions on China, Russia, Iran

The US tightens export controls on chips, quantum kit, and weaponizable tech President Biden has accelerated the US effort to rein in China's technological advancement by implementing tighter controls on quantum computing and semiconductor goods. Advanced chip making tools and other semiconductor technologies are crucial for artificial intelligence applications. The US Department of Commerce announced the new rules, and cited 'national security and foreign policy reasons' for the move. The restrictions cover worldwide exports, and the Bureau of Industry's Alan Estevez confirms, "Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security" Race to the top The new rules mean that any company exporting certain technologies will need a license from the US government to do so, giving the government the opportunity to restrict sales to countries in alignment with its foreign policy goals. The Center for Strategic and International Sales assessed, "The success of US controls is likely to depend on the ability to harmonize US restrictions with those of key allies, whose export controls differ substantially from those of the United States, resulting in substantial gaps." Restrictions on chip sales and services have already been in the works with the US leveraging authority in hopes of influencing Japan to limit their exports. China threatened retaliation to this, as both the US and China look to dominate in what seems to be evolving into a battle of attrition between the two superpowers. China currently leads in tech research and in chip spending, and is reportedly close to the development levels of the lead manufacturers, Taiwan Semiconductor Manufacturing. As AI continues to develop, semiconductors and other valuable tech components Via The Register