According to The Wall Street Journal, new restrictions on the sale of chips and manufacturing equipment to China were announced by the Biden administration.
The new rules require chip-makers to get a license from the Commerce Department if they want to sell their equipment to Chinese companies. The administration banned international companies from exporting chips made with US technology.
Semiconductor chips are used in a lot of different technology products.
Increased investment by the US in domestic chip manufacturing has led to the decision. The $280 billion CHIPS and Science Act was signed by President Joe Biden in August. The measure was the result of months of discussions between the Biden administration and congressional leaders.
Semiconductor chips are used in a lot of different technology products. The White House's move to restrict US chip sales to China is an attempt to cut off Beijing's access to American tech before it fully matures.
Billions of dollars have been invested in states like Ohio and Idaho. One of the first to benefit from the new subsidy funding was Biden, who was in Ohio in September to celebrate the breaking of the Intel plant.
Biden said the bill was a once in a generation investment in America. The chips need to be made in America to bring down costs and create jobs.
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