The US Commerce Department issued rules in October barring semiconductor equipment makers from selling certain tools to China and prohibiting the export of some chips used in artificial intelligence applications. These restrictions have already impacted the revenues of companies like Applied Materials and Nvidia. The Biden administration plans to strengthen these measures, potentially influencing overseas companies to further limit China's access to chipmaking equipment. The new rules will also reflect negotiations with Japan and the Netherlands.
Key takeaways:
- CEOs of Intel Corp., Qualcomm Inc., and Nvidia Corp. are planning to lobby against the Biden administration's upcoming restrictions on the sale of certain chips and semiconductor manufacturing equipment to China.
- The companies argue that being cut off from their largest market will harm their ability to advance their technology and ultimately undermine US leadership.
- China is a significant source of revenue for these companies, with Qualcomm getting more than 60% of its revenue from the region, Intel counting China as its biggest sales region, and Nvidia getting about a fifth of its revenue from China.
- The US administration plans to strengthen the measures already announced, which include barring semiconductor equipment makers from selling certain tools to China and prohibiting the export of some chips used in artificial intelligence applications.