Biden Administration to Blacklist Chinese Chip Company for Illegal Activity”

The Biden administration is getting ready to add a Chinese company called Sophgo to a special blacklist. This is happening because Sophgo used a chip made by TSMC in a Huawei AI processor without permission. Sophgo is connected to Bitmain, a company that makes bitcoin mining equipment.

When a company is put on the U.S. Commerce Department’s Entity List, it means they can’t buy goods and technology from the U.S. without permission. This permission is usually hard to get. Huawei, a big company that makes phone equipment, has been on this list since 2019. Since 2020, no one can send even chips made outside of the U.S. to Huawei unless they get a special license.