The Biden administration expanded its restricted trade list on Wednesday by adding more than two dozen Chinese entities. Among them is Sophgo, a company whose chip, produced by TSMC, was illicitly used in a Huawei artificial intelligence processor. Sophgo and other related entities were included in the U.S. Commerce Department’s Entity List, preventing them from receiving exports of goods or technology without a license, which is typically denied.
Sophgo came under scrutiny when a chip found in Huawei’s Ascend 910B multi-chip AI system was found to match one it had obtained from Taiwan Semiconductor Manufacturing Co. As a consequence, the Commerce Department took action against Sophgo and other companies associated with Huawei, adding them to the restricted trade list. Sophgo, an affiliate of Bitmain, a bitcoin mining equipment supplier, did not respond to requests for comment, nor did Huawei.
In response to these developments, the U.S. has also tightened restrictions on advanced computing semiconductors, particularly those used in AI applications, to prevent them from reaching China. The latest measures build upon previous restrictions imposed on TSMC after its chip was discovered in Huawei’s Ascend 910B system. The new regulations target chip factories and packaging companies dealing with certain advanced chips, aiming to disrupt China’s access to technologies that could bolster its military capabilities.
The heightened controls extend to chips at 14 or 16 nanometer nodes or below, which are integral to AI applications, affecting companies beyond TSMC and potentially Samsung. These chipmakers may be subject to licensing requirements unless specific conditions are met, such as collaborating with approved designers and chip packagers who adhere to due diligence and reporting protocols.
In a bid to safeguard national security and foreign policy interests, entities are added to the Entity List for engaging in activities deemed detrimental. The recent additions were motivated by concerns that ten entities could support China’s military modernization through advanced AI research, while one entity was involved in developing lithography equipment for advanced chip production in China. Additionally, sixteen companies, including Sophgo units, were identified as contributing to the advancement of China’s weapons systems and weapons of mass destruction.
Amid growing concerns over national security, the United States government is taking action to restrict the use of certain high-tech surveillance applications due to the potential risk they pose in relation to Huawei. This move comes as part of broader efforts to safeguard sensitive data and prevent unauthorized access to critical information. The decision reflects ongoing scrutiny of technology companies and their involvement in sensitive sectors, particularly in light of geopolitical tensions and the evolving landscape of global security. The United States continues to monitor and evaluate the potential risks associated with advanced surveillance technologies, aiming to mitigate threats and protect national interests.
