© Reuters. FILE PHOTO: Flags of China and U.S. are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
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By Karen Freifeld and Alexandra Alper
(Reuters) – A U.S. rule that restricts shipments of certain advanced chips to China has been revised and is under final review, according to a government posting, suggesting that further curbs on chips that can be used for artificial intelligence are coming soon.
Reuters exclusively reported last week that U.S. officials had warned China to expect rules restricting shipments of semiconductor equipment and advanced AI chips to China to be updated this month.
Sources say the updates would add restrictions and close loopholes in rules first unveiled on Oct. 7, 2022, which aimed to slow China’s technological and military advances to protect U.S. national security.
A spokesperson for the U.S. Department of Commerce, which oversees export controls, declined comment.
The rule restricting exports of chipmaking equipment was posted for review last week, Reuters reported on Oct. 5.
The regulation on controls on high-end chips, advanced computing integrated circuits (ICs), and supercomputing was received for review on Oct. 10, according to the Office of Management and Budget website.
Export control rules are not posted by OMB until there is agreement between the Departments of State, Defense, Commerce and Energy on their content, according to former officials. But issues can still be raised as part of the OMB interagency clearance process, which can slow the approval process.