New US rule on foreign chip equipment exports to China to exempt some allies

NEW YORK: The Biden administration plans to unveil a new rule next month that will expand U.S. powers to stop exports of semiconductor manufacturing equipment from some foreign countries to Chinese chipmakers, two sources familiar with the rule said.

But shipments from allies that export key chipmaking equipment – including Japan, the Netherlands and South Korea – will be excluded, limiting the impact of the rule, said the sources who were not authorised to speak to media and declined to be identified.