Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under Joe Biden to limit Beijing’s technological prowess.

Considered critical for US national security, the AI Diffusion rule divides the world into three tiers. At the top are countries that can access US-made AI chips without restrictions, including key chip ally Taiwan and 17 other countries.

In a move to further tighten the noose on China's burgeoning tech sector, President Donald Trump is reportedly considering stricter measures on the country's semiconductor industry. This move is seen as an extension of efforts initiated under the Joe Biden administration to curb China's technological advancement.