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Sources: the Commerce Department is finalizing a semiconductor control update that would prevent remote access and chip smuggling into China via data centers (Leo Schwartz/The Information)

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In short

The Commerce Department is preparing an update to semiconductor regulations aimed at cutting off advanced technology access to China. These forthcoming rules will focus primarily on data centers to prevent the smuggling of chips and shut down remote access avenues. While the regulatory focus is set on these facilities, specific operational parameters and an official rollout schedule have not been made public.

Key points

  • Regulators are attempting to eliminate indirect computing pathways that undermine existin…: Regulators are attempting to eliminate indirect computing pathways that undermine existing export restrictions.
  • Data centers will face targeted regulatory scrutiny to prevent foreign entities from util…: Data centers will face targeted regulatory scrutiny to prevent foreign entities from utilizing restricted hardware.
  • The pending framework addresses both digital access and the physical diversion of advance…: The pending framework addresses both digital access and the physical diversion of advanced semiconductors.

Sources checked by our analysis pipeline: 1

Wall Street Journal: |

New York Times: |

Bloomberg: |

Semafor: |

Axios: |

Leo Schwartz / The Information: |

Axios: |

Google: |

Todd Bishop / GeekWire: |

Alison Sider / Wall Street Journal: |

Bailey Lipschultz / Bloomberg: |

@firesidealpha: |

Scott Patterson / Bloomberg: |

Riley Griffin / Bloomberg: |

Nick Clegg / The Atlantic: |

Politico: |

Robert Hart / The Verge: |

Kyt Dotson / SiliconANGLE: |

Janko Roettgers / Lowpass: |

Bloomberg: |

Bloomberg: |

Jeannine Amodeo / Bloomberg: |

Tim Keary / Forbes: |

Eduardo Baptista / Reuters: |

Gian Volpicelli / Bloomberg: |

Wall Street Journal: |

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