US plans new restrictions on chip exports, chip-making tools to China: report

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According to a new report, the Biden administration plans to extend export restrictions on US chip companies to China.

Reuters reported Sunday evening that the new restrictions on artificial intelligence semiconductors and chip-making tools will be based on restrictions issued earlier this year in letters to KLA Corp. CLAC,
+2.16%,
Lam Research Corp. LRCX,
+2.65%
and Applied Materials Inc. AMAT,
+2.90%.

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The restrictions prevented those companies from exporting semiconductor equipment to Chinese chip makers making sub-14-nanometer processes unless first approved by the Commerce Department, Reuters said.

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The report said the new curbs would also codify restrictions sent to Nvidia Corp. last month. NVDA were sent,
+2.84%
and Advanced Micro Devices Inc. AMD,
+3.23%
against sending certain AI chips to China. Nvidia shares plunged to a 52-week low after the restrictions were announced.

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The broader restrictions could affect a number of other major tech companies, including Intel Corp. INTC,
+2.31%,
Dell Technologies Inc. DELL,
+3.35%
and Hewlett-Packard Enterprise Co. HPE,
+1.44%,
according to the report.

Reuters also said other restrictions could be added.

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