In early December 2024, President Joe Biden’s administration dealt a significant blow to China’s integrated circuit industry. This sanctions package added 140 Chinese companies to the U.S. blacklist. Its third major offensive in this sector aims to sharply curtail the arrival of chip manufacturing equipment necessary for producing advanced semiconductors and cutting-edge integrated circuits in China.
These bans primarily target Chinese companies that design and manufacture lithography equipment used in semiconductor production. The numbers tell the story: More than 100 of the 140 blacklisted firms are lithography equipment manufacturers. While these companies produce their own equipment, they rely on imported components—dependencies the Biden administration has exploited.
Nvidia Speaks Out
On Jan. 20, President-elect Donald Trump will return to the White House. The current administration has less than ten days left, but according to Reuters, it plans to impose additional restrictions on AI chip exports to China. If enacted, this move would solidify Biden’s “legacy” while potentially creating further challenges for companies like Nvidia.
“We would encourage President Biden to not preempt incoming President Trump by enacting a policy that will only harm the U.S. economy.”
According to Reuters, Vice President Ned Finkle recently issued a statement expressing the company’s concerns. His remarks suggest the U.S. government may introduce new sanctions in the coming days and underscore Nvidia’s dissatisfaction with current policies. “We would encourage President Biden to not preempt incoming President Trump by enacting a policy that will only harm the U.S. economy, set America back, and play into the hands of U.S. adversaries,” Finkle said.
“This last-minute Biden administration policy would be a legacy that will be criticized by U.S. industry and the global community,” he added. Existing U.S. sanctions already prevent Nvidia from selling its most advanced AI chips to Chinese customers, forcing the company, led by Jensen Huang, to develop simplified versions of these chips to meet U.S. Department of Commerce requirements. The proposed bans could further restrict Nvidia from selling even these downgraded chips in China. The outcome will likely be revealed in the coming days.
Image | Nvidia
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