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The Joe Biden administration plans next month to broaden curbs on US shipments to China of semiconductors, well-placed sources said.
The US’s new restrictions on Nvidia selling advanced chips to Chinese customers threatens to deal a heavy blow to the country’s technological development.
The US beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia and AMD to stop sending their flagship AI chips there.
Qualcomm is taking another run at the market for server processors, betting it can decrease its reliance on smartphones.
The divide between the biggest chip makers and those highly dependent on demand for mainstream products is set to worsen.
Mounting concern over semiconductor demand is sending shudders through Asia’s high-tech exporters, which historically serve as a bellwether for the international economy.
Even in an industry famous for its roller-coaster cycles, chip makers are bracing for a particularly severe shift in coming months.
AMD forecast third quarter revenue slightly below estimates, a signal of uncertainty that concerned some investors after the company stock made huge gains in July.
Companies that receive funding under a new US programme have to promise not to increase their production of advanced chips in China.