New curbs on chip tool exports to China are nearly finalised as the US seeks to close loopholes

An updated rule on chip-making equipment exports would add to restrictions implemented in October 2022, which further strained US-China relations

The new regulation was posted on the Office of Management and Budget website on Wednesday, and a source confirmed the posting to Reuters

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A silicon wafer in a die attach machine. The US is preparing new export restrictions on chip-making tools to close loopholes in earlier regulation. Photo: Shutterstock

Published: 10:57am, 6 Oct 2023

An updated rule curbing exports of US chipmaking equipment to China is in the final stages of review, according to a government posting and a source, a sign the Biden administration is poised to soon tighten restrictions on Beijing.

Reuters exclusively reported on Monday that US officials had warned China in recent weeks to expect rules restricting shipments of semiconductor equipment and advanced AI chips to China to be updated this month.

The updates would add restrictions and close loopholes in rules first unveiled on October 7, 2022, sources say. Those rules angered Beijing and further strained relations with Washington.

A regulation titled “Export controls to Semiconductor Manufacturing Items, Entity List Modifications” was posted on the Office of Management and Budget (OMB) website on Wednesday.

A person familiar with the matter, who requested anonymity, confirmed the posting refers to the expected restriction on sending chipmaking tools to China.

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