The Biden administration has expanded trade restrictions on several Chinese entities, including Sophgo, due to concerns about technology transfers to China.
The U.S. Commerce Department's Entity List now includes 14 Chinese companies and two from Singapore, subjecting them to limitations on receiving goods or technology exports without a license.
Sophgo's involvement came to light after a chip found in Huawei's Ascend 910B multi-chip AI system was traced back to an order placed with TSMC.
The U.S. government aims to prevent advanced technology from bolstering China's military capabilities and tech sector.
Sophgo, affiliated with Bitmain, denies any business relationship with Huawei but has been caught up in the crackdown on entities connected to Huawei.
The U.S. has also tightened regulations on advanced computing semiconductors, impacting TSMC, Samsung, and others.
These measures are part of the U.S. government's efforts to control the flow of advanced technology to China and safeguard its technological edge.
The restrictions also extend to memory chip manufacturers, such as Changxin Memory Technologies (CXMT), affecting the global semiconductor supply chain.
The semiconductor industry must navigate the evolving regulatory landscape and geopolitical tensions.