The Biden administration next month will place new restrictions on U.S. shipments of semiconductor chips and chipmaking equipment to China.
The Commerce Department will formalize new rules prohibiting the shipment of chipmaking equipment to Chinese factories that produce advanced semiconductors, citing people familiar with the matter.
U.S. companies seeking to export the equipment must obtain a Commerce Department license.
Three U.S. companies — KLA Corp., Lam Research Corp., and Applied Materials Inc. — already operate under the restrictions as directed by the Commerce Department.
Semiconductor chips power most electrical systems and machines, from appliances to computers, vehicles and modern weapons.
Over the summer, the U.S. passed the Chips and Science Act, seeking to increase America’s competitive with China in the semiconductor industry with $50 billion in funding for the industry.
