More restrictions on China's access to AI chip technology are apparently being considered by the U.S.

Important Point

• Bloomberg said on Tuesday that the United States is thinking about putting more limitations on China's access to AI chip technology.
• According to Bloomberg, which cited people familiar with the situation, the Biden administration is considering taking steps that would target very sophisticated semiconductor architecture known as gate all-around.
• The term "GAA" describes a novel transistor architecture that may result in increased efficiency and reduced power usage.

According to a Bloomberg report on Tuesday, the United States may tighten restrictions even more on China's access to chip technology, which is essential for artificial intelligence.

Bloomberg reported that the Biden administration is considering measures to target the high-tech chip architecture known as gate all-around, citing people with knowledge of the situation. The term "GAA" describes a novel transistor architecture that may result in increased efficiency and reduced power usage.

Samsung Electronics, based in South Korea, has already commenced manufacturing3-nanometer chips featuring GAA technology. It has been stated that Taiwan Semiconductor Manufacturing Company intends to integrate GAA into its forthcoming 2-nanometer chips.

In early Asian trade on Wednesday morning, shares of TSMC and Samsung Electronics were up 1.6% and 0.4%, respectively.

It was not immediately clear when the U.S. is "determining the scope of a potential rule," according to Bloomberg's sources, and when that process would end. According to the article, the goal of the US actions is to make it harder for China to assemble the sophisticated computing infrastructure needed to create and operate AI models.

When news reporters asked for response, the U.S. Department of Commerce and the Bureau of Industry and Security—which is in charge of export controls—did not get back to her right away.

In October 2022, the United States enacted a set of export regulations with the intention of limiting China's access to cutting-edge chip technology, specifically those utilized in artificial intelligence applications. In an effort to stop the shipments of the more sophisticated processors from Nvidia and other companies, it then strengthened export restrictions on AI chips to China in October of last year.

According to Bloomberg, the proposed GAA restrictions were judged to be "overly broad" in their draft form. It further stated that it was unclear if the action will target China's GAA development or prohibit foreign businesses from doing business in China.

China invested 47.5 billion yuan (344 billion yuan) in a third semiconductor fund in May, ostensibly to increase "self-reliance in science and technology." This action comes as nations like the Netherlands and the United States try to limit China's technological influence.

The Dutch authorities prohibited ASML, a manufacturer of semiconductor equipment, from exporting several of its tools to China earlier this year.

Here's the Bloomberg report's key word:

• Limitations would focus on cutting-edge "gate all-around" technology.
• Early negotiations on high-bandwidth memory limits are being held by US officials.