(Bloomberg) -- The US unveiled a fresh round of regulations aimed at keeping advanced chips produced by Taiwan Semiconductor Manufacturing Co. and other companies from making their way to China, one last attempt by the Biden administration to fill holes in the tech blockade of its geopolitical rival.
The new measures call for chip producers like TSMC and Samsung Electronics Co. to step up their scrutiny and due diligence of customers, especially Chinese firms. That’s an acknowledgment that advanced semiconductors are still making their way to China and Russia, including one incident where TSMC-made chips were secretly diverted to the blacklisted Huawei Technologies Co.
The curbs unveiled Wednesday impose sanctions on 16 Chinese companies that are “acting at the behest of Beijing” to build their country’s chip industry, the Commerce Department said in a press release. The list includes Sophgo Technologies Ltd., which was allegedly involved in Huawei getting access to TSMC chips last year.
The US is also expanding licensing requirements on foundries — companies like TSMC that manufacture chips for external customers — and packaging companies seeking to export advanced semiconductors, according to the release. The tougher rules apply unless the chips are for “trusted” customers that prove the processors fall below a defined performance threshold, or if the chips are packaged by approved assemblers that verify their technological capabilities.
Earlier: US to Push TSMC and Samsung to Tighten Flow of Chips to China
“These rules will further target and strengthen our controls to help ensure that the PRC and others who seek to circumvent our laws and undermine US national security fail in their efforts,” Secretary of Commerce Gina Raimondo said in a statement Wednesday, referring to the People’s Republic of China. “We will continue to safeguard our national security by restricting access to advanced semiconductors, aggressively enforcing our rules, and proactively addressing new and emerging threats.”
The Biden administration is trying to cement its legacy in restricting the flow of advanced technologies to China in its final days in power. The Democratic team unveiled rounds of sweeping controls on the country’s access to chips and artificial intelligence, and has poured out a series of last-minute rules before leaving office on Jan. 20.
On Monday, the US published curbs that limit the sale of AI chips by the likes of Nvidia Corp. and other advanced makers to data centers in most countries. The due diligence measures apply to semiconductor exports covered by those global restrictions.
The rules for AI chips follow controls announced in December that aim to cut off Beijing’s access to high-bandwidth memory chips, which are essential AI components. Wednesday’s regulations include some updates to those earlier measures.
China’s Commerce Ministry said the country “firmly opposed” the spate of US measures, adding that the recent rules “will only strengthen China’s confidence and ability to be self-reliant and technologically innovative.”
--With assistance from Foster Wong.
(Updates with statement from Chinese Commerce Ministry in final paragraph.)
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