Investing.com– The U.S. is planning more regulations aimed at limiting the flow of advanced chips made by TSMC and its peers into China, Bloomberg reported on Wednesday, adding to the flurry of restrictions imposed by the Biden administration in recent years.
The proposed measures will encourage manufacturers such as TSMC (NYSE:TSM), Samsung Electronics Co Ltd (KS:005930), and Intel Corporation (NASDAQ:INTC) to more carefully scrutinize their customers for ties to blacklisted Chinese organizations, the Bloomberg report said.
The Bloomberg report comes just days after the U.S. introduced even more restrictions on the export of advanced artificial intelligence chips, in a continued effort to cut China off from advances in the fast-growing technology.
The U.S. had this week introduced even more restrictions on AI chip exports, specifically that it will introduce caps on the number of AI chips that can be exported to most countries. Unlimited access to U.S. AI technology will only be reserved for America’s closest allies.
Recent reports said that a shipment of TSMC’s advanced chips was secretly diverted to Huawei Technologies, which is blacklisted by the U.S. for alleged ties to the Chinese military. Huawei is one of China’s most advanced chipmakers, and has developed chips that rival offerings from majors such as NVIDIA Corporation (NASDAQ:NVDA) in the country.
The latest round of restrictions went beyond just China, and capped off four years of steady chip crackdowns under the Biden administration.
It is now unclear how incoming President Donald Trump will treat chip restrictions against China. Trump has presented a hawkish stance against Beijing, and intends to impose steep trade tariffs against the country.
