U.S. plans to increase semiconductor export restrictions to China
Ismed Syahrul

President Joe Biden and his administration intend to widen the restriction cast on exports of semiconductors to China. The move comes as the U.S. looks to take measures on preventing China from obtaining chips that can be used towards artificial intelligence and related chipmaking tools.
The Commerce Department plans to publish new guidelines constructed off the restrictions outlined in the letters that were sent to Applied Materials (NASDAQ:AMAT), KLA Corporation (NASDAQ:KLAC), and Lam Research (NASDAQ:LRCX).
The letters prohibited the organizations from exporting chipmaking equipment to China that would allow for the production of advanced semiconductors with sub-14 nanometer processes.
In broadening its semiconductor export restrictions, other chip giants like Advanced Micro Devices (NASDAQ:AMD) and NVIDIA Corporation (NVDA) may also get caught in the crosshairs.
Reuters reported that a spokesperson for the Commerce Department stated that it is "taking a comprehensive approach to implement additional actions...to protect U.S. national security and foreign policy interests." Moreover, this includes eliminating China from obtaining U.S.-based technology that can be used to enhance any military applications.
Daily price action: AMAT -0.7%, KLAC -0.1%, LRCX -0.8%, AMD +0.5%, and NVDA +0.4%.
In broader market news, stock index futures are higher on Monday as investors brace for the last full week of economic numbers before the next Fed decision.