El US Department of Commerce already announced on December 2 a package of rules aimed at further limiting the capacity of China to produce advanced node semiconductors that can be used in the next generation of artificial intelligence (AI) and advanced computing.
Among others, the announced rules included new controls on semiconductor manufacturing equipment and software tools with potential military uses. In the past month, there have also been more than 100 additions to the Entity List, which sets out which companies are subject to trade restrictions and require a license. These include household names such as Chinese tech giant Tencent or Amperex Technology, the leading supplier of batteries Tesla. These measures have provoked an angry complaint from the Chinese authorities. However, in a twist, this same Monday, January 13, the Biden administration has unveiled a novel three-tier export control regime that gives 18 allied countries unfettered access to AI-related chips while requiring import licenses for most other countries.
The measure is intended to make it more difficult for China to use third countries to circumvent the restrictions. The measure is a shock for many Asian countries such as Singapore, Malaysia, Thailand and Vietnam, which are experiencing a surge in demand for AI data centers, will now initially face stricter export licensing requirements. The rules will take effect after a 120-day consultation period unless amended or scrapped by the incoming Trump administration.
Source: CESCE
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