The U.S. Department of Commerce has further restricted China's access to AI chips as important tools and components.
The new regulations will restrict the sale of 27 types of high bandwidth memory (HBM) and chip manufacturing equipment, including products manufactured by U.S. companies overseas, adding to existing restrictions impacting advanced logic chips.
The department has also added a further 140 Chinese companies acting on behalf of the Chinese government to a blacklist. The names of these companies were not listed in the initial statement.
According to U.S. officials who spoke to Bloomberg last week, the detailed list of new sanctions and additional companies will be released in the latter part of Monday.
"This action is the culmination of the targeted approach of the Biden-Harris administration, working with allied countries and partners to undermine the ability of the People's Republic of China to produce advanced technology that poses national security risks, through indigenous innovation," the statement said. "There is no tougher regime in strategically addressing China's military modernization through export controls."
Regulations announced on Monday, according to government officials who are expected to impose similar restrictions, include exemptions for allied countries such as the Netherlands and Japan. Both governments have not issued such additional rules so far.
SK Hynix, a major supplier of Nvidia (NVDA) in South Korea, currently leads in providing HBM chips, followed by Micron Technology (MU) -0.77% and Samsung Electronics (OTCPK: SSNLF). This regulation could potentially harm U.S. chip manufacturers such as Lam Research (LRCX) -0.55%, KLA Corp (KLAC), Applied Materials (AMAT) by -0.32%.