The steps are intended to prevent American chipmakers from selling products to China that circumvent government restrictions as part of the administration's actions to block more AI chip exports.
The U.S. is updating rules to prevent American chipmakers from selling AI chips to China that skirt existing restrictions.
These updated rules will expand the scope of restricted chips and demand reporting for certain shipments.
The move aims to prevent U.S. technology from strengthening China's military but risks complicating U.S.-China diplomatic efforts.
Consumer chips are exempt, but the new rules aim to close loopholes and evolve with technology advancements.
Oct 15 (Reuters) - The U.S. will take steps to prevent American chipmakers from selling semiconductors to China that circumvent government restrictions, a U.S. official said, as part of the Biden administration's upcoming actions to block more AI chip exports.
The new rules, details of which Reuters is reporting for the first time, will be added to sweeping U.S. restrictions on shipments of advanced chips and chipmaking equipment to China unveiled last October.
The new rules will block some AI chips that fall just under current technical parameters while demanding companies report shipments of others, said the official, who provided information on condition of anonymity.
Several senior members of the Biden administration have met their Chinese counterparts in recent months, and the latest round of rules risks complicating the diplomatic effort.
While the official declined to identify which additional chips will be effectively banned, Nvidia's H800 is a semiconductor sources have suggested the administration has wanted to block.
The Biden administration told Beijing of its plans to update the contentious rules this month, Reuters reported earlier in October, as part of a policy aimed at stabilizing relations between the superpowers.
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