The Biden administration is considering new targeted restrictions on shipments of chipmaking tools to China, seeking to hamstring advances by China's largest chipmaker, SMIC, without slowing the flow of chips into the global economy, five people familiar with the matter told Reuters.
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The Commerce Department, which oversees export policy, is actively discussing the possibility of banning exports of chipmaking tools to those Chinese factories that make advanced semiconductors at the 14 nanometer node and smaller, the people said, to stymie China's efforts at making more state-of-the-art chips.
In the meantime, the agency would allow those same tools to be sent to plants owned by the same firms but which make less advanced semiconductors, to safeguard the supply of commodity chips as the world recovers from a chip shortage.
A spokesperson for the Commerce Department did not comment directly on the idea, but said "with respect to semiconductor-related export license applications in particular, (Commerce) and the other reviewing agencies ... consider a variety of factors in making licensing decisions, including the technology node for the proposed export".
The agency also stressed that the Biden administration regularly consults with allies and the industry about how best to tailor measures to deny China access to advanced technologies with both civilian and military uses.
