New US rule on foreign chip equipment exports to China to exempt allies

The rule would bar about half a dozen Chinese semiconductor fabrication factories at the centre of China’s most sophisticated chipmaking efforts from receiving exports from many countries. — Reuters

NEW YORK: President Joe Biden’s administration plans to unveil a new rule next month that will expand US powers to stop exports of semiconductor manufacturing equipment from some foreign countries to Chinese chipmakers, two sources familiar with the rule say.

But shipments from allies that export key chip making equipment – including Japan, the Netherlands and South Korea – will be excluded, limiting the impact of the rule, said the sources who were not authorised to speak to media and declined to be identified.