• The US has blacklisted 25 Chinese companies, including Zhipu AI and Sophgo, due to concerns over national security.
• Sophgo's chip, linked to TSMC, was found in a Huawei AI processor, raising alarms over potential military implications.
• The US Commerce Department is tightening restrictions on advanced semiconductors to prevent diversion to Chinese military efforts.

The Biden administration has made a significant move by adding over 25 Chinese entities to its trade blacklist, including companies like Sophgo and Zhipu AI. This action comes amidst growing concerns regarding the incorporation of advanced technology in military applications, particularly those connected with AI-enabled products from Huawei.

The US Department of Commerce has put Sophgo on the Entity List due to its association with the Taiwan Semiconductor Manufacturing Co. (TSMC) chips that were found illicitly integrated in Huawei's Ascend 910B AI processor. Compounding the situation, Zhipu AI, which is backed by major investors like Alibaba and Tencent, has been criticized for allegedly aiding China’s military modernization through its advancements in AI technology.

In a recent statement, Sophgo asserted that it had “never been engaged in any direct or indirect business relationship” with Huawei, while Zhipu AI claimed the US action lacked factual basis and would not significantly impact its operations as it asserts its independence in end-to-end AI technology development.

The newly implemented trade restrictions additionally impose stricter controls on the export of advanced semiconductors, particularly those below 16 nanometers, which are essential for AI applications. Notably, the changes also affect memory technologies like DRAM, vital for high-performance AI processors. According to officials, the US is firmly committed to ensuring that these semiconductors do not fuel efforts that could strengthen Chinese military capabilities, particularly those linked to advanced AI applications.

These measures are part of a broader strategy to limit China’s access to critical technologies that may enhance their military and surveillance capabilities, which have long been subjects of scrutiny by US authorities for their implications on national security. The ruling follows previous actions against companies viewed as part of Huawei's extensive supply chain.

For more details, refer to the reports from SCMP and India Times.