The microchip supply chain is complex and while US giants design semiconductors, production is mostly outsourced to Asian companies
The microchip supply chain is complex and while US giants design semiconductors, production is mostly outsourced to Asian companies AFP / NICOLAS ASFOURI

President Joe Biden's administration is rolling out new tighter export controls on various technologies that include semiconductors and quantum computing in response to China's growing influence in the global chip industry. Authorities have attributed the move to "national security and foreign policy reasons."

On Thursday, the U.S. Commerce Department's Bureau of Industry and Security (BIS) released new rules that would impose better export controls on quantum computers, related equipment and components; high-bandwidth chips that are vital in the making of AI applications; equipment, components and related technology and software designed to produce metal or metal alloy components; as well as advanced chipmaking tools.

According to the department, there was a thorough discussion with international partners before it came up with the new rules, CNBC reported. The new restrictions cover worldwide exports but include exemptions for countries like Japan and the Netherlands that have similar controls.

The Bureau of Industry and Security expects that similar measures will be adopted by more countries.

"Today's action ensures our national export controls keep step with rapidly evolving technologies and are more effective when we work in concert with international partners," Alan Estevez, Under Secretary for the Bureau of Industry and Security, said in a press release.

"Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security," he added.

Officials said that there will be a 60-day comment period during which they will monitor feedback before a final ruling.

The move comes as Beijing is making bold moves to be a leader in quantum computing and semiconductors. Though China is not categorically mentioned in the documents, the restrictions mirror those imposed by the Biden administration aimed at limiting China's development in artificial intelligence and computing, the report said.

Despite the tech sanctions and increased restrictions, China has ramped up its efforts to gain a competitive edge in critical technology development, investing billions to strengthen its position in the chip-making industry.