Home Business News US Chinese hawks seek to cut chip-making tool sales to Beijing

US Chinese hawks seek to cut chip-making tool sales to Beijing


© Reuters. FILE PHOTO: US President Biden signs executive order on economy at the White House in Washington


By Karen Freifeld

(Reuters) – Chinese hawks are urging Biden authorities to restrict sales of chip-making tools to Chinese companies, similar to their actions against telecom equipment maker Huawei Technologies Co.

In a letter to US Commerce Secretary Gina Raimondo, Representative Michael McCaul and Sen. Tom Cotton said the rule requires a U.S. license to sell semiconductors manufactured abroad with technology of The US for Huawei should apply to any Chinese company that design more advanced chips at 14 nanometers or less. .

The letter, dated April 13 and released on Thursday, seeks licenses to sell electronic design automation software (EDA), among other restrictions on the sale of chips to Chinese companies. National.

These actions will “ensure that US companies, as well as companies from our partner countries and our allies, are not allowed to sell to the communists the rope they will use to hang us all”, written letter.

A Commerce Department representative, admitting to having received the letter, noted that seven Chinese supercomputer entities were put on a commercial blacklist last week.

The agency “continuously reviews situations to determine if additional actions are warranted,” the person said.

Last year, the United States issued a rule requiring a license to sell semiconductors for Huawei manufactured abroad with US chip manufacturing equipment, expanding the scope of operations to stop exports to the company. .

Huawei was added to the Commerce Department’s “entity list” in 2019 because of national security and foreign policy concerns.

Blacklisting restricts sales to Huawei from US suppliers, but does not detract from the value of commercial chips manufactured abroad. In response, the United States extended the Foreign Direct Product Rule, which applies to goods made abroad based on U.S. technology or software to U.S. regulations. for Huawei.

This week’s letter came after the Tianjin Phytium Information Technology Company and six other Chinese supercomputer entities were included in the list for supporting military modernization efforts.

Not only does Cotton and McCaul want to restrict US sales of Phytium, but also require a license for any company to use US tools to make semiconductor chips designed by Phytium.

Whatever brevity, they say, “would be half a fake as an act of force.”

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