The Trump administration is advancing plans to impose stricter semiconductor restrictions on China, it has emerged, expanding measures first implemented under former President Joe Biden. According to Bloomberg News, US officials recently engaged in discussions with Japanese and Dutch counterparts about imposing new limits on engineers from Tokyo Electron and ASML servicing semiconductor equipment in China.
Sources cited in the report indicated that some Trump officials are pushing for additional restrictions on the volume and types of Nvidia chips exported to China without a licence. The move is part of Washington’s broader strategy to curb China’s access to advanced semiconductor technology.
Nvidia and Japan’s Ministry of Economy, Trade and Industry declined to comment on the matter, while Tokyo Electron, ASML, the White House, and the Dutch foreign trade ministry have yet to issue statements.
The Trump administration is working to align with key allies in implementing semiconductor restrictions similar to those imposed on US chip equipment manufacturers such as Lam Research, Applied Materials, and KLA.
Meanwhile, Reuters reported that Chinese technology firms have increased orders for Nvidia’s H20 AI chip, driven by rising demand for DeepSeek’s AI models. According to six sources, the surge in orders highlights Nvidia’s continued dominance in the AI chip market and suggests that concerns over declining AI chip demand may be overstated.
Tencent, ByteDance, and Alibaba have significantly expanded purchases of the H20 chip, which is tailored for the Chinese market due to US export controls, two sources stated. Demand has grown since DeepSeek’s emergence in global AI discussions last month. These firms not only require AI chips for internal use but also provide cloud computing services that allow businesses to access AI-powered tools.
A source at one of China’s largest server manufacturers noted that demand is expanding beyond major technology firms, with companies in healthcare and education acquiring AI servers equipped with DeepSeek models and Nvidia H20 chips. Previously, AI computing systems were mainly purchased by financial institutions and telecom firms, the source added.
The Trump administration is reportedly reviewing potential restrictions on Nvidia’s H20 chip exports to China, as per Reuters. While speculation about tighter controls could be influencing procurement, sources cited DeepSeek’s expanding role in AI development as the primary factor driving demand.
Taiwan’s TSMC investment plans face uncertainty
Separately, Taiwan’s Economy Minister Kuo Jyh-huei denied receiving any official application from TSMC regarding overseas investment. His comments followed US media reports suggesting that the Taiwanese contract chipmaker, a key supplier to Apple and Nvidia, had been in talks to acquire a stake in Intel.
Under Taiwanese regulations, major foreign investments by domestic companies require approval from the Economy Ministry’s investment review commission. Kuo declined to comment on speculation, stating that discussions would only take place if a formal request was submitted.
Meanwhile, Trump has repeatedly criticised Taiwan’s dominance in global semiconductor production, claiming it has contributed to the decline of US chip manufacturing. He has vowed to bring semiconductor production back to the US and has warned of potential tariffs on imported chips.
Read more: China vows retaliation if US enacts tighter semiconductor restrictions
