TAIPEI (Taiwan News) — The Biden administration blacklisted 25 Chinese entities on Wednesday, including the company whose TSMC chip was discovered in a Huawei processor.

Sophgo and Zhipu AI are among the companies that can no longer receive exports without a license, which is generally denied, Reuters reported. The entities were flagged due to concerns about their engagement in chip development or AI research that could aid China’s military, or pose a risk of diversion to Huawei, according to the US Commerce Department.

TSMC suspended shipments to Beijing-based Sophgo after it found one of its chips in a Huawei AI processor last October. Sophgo is among numerous companies that have been punished for helping Huawei, but it denies conducting business relations with the Chinese giant. 

The US blacklisted Huawei in May 2019 by placing it on the “Entity List,” and expanded restrictions in 2020 to block foreign sales of chips to the company. Following the chip discovery, the US instructed TSMC to halt production of advanced AI chips for China last November. 

This Wednesday, the US again tightened export regulations for semiconductor manufacturers, affecting 14 or 16 nm chips or below that can be used in AI applications. "We are holding foundries accountable for verifying that their chips are not being diverted to restricted entities," Under Commerce Secretary Alan Estevez said.

The regulations also restrict China’s leading makers of DRAM chips such as ChangXin Memory Technologies (CXMT) to slow China's military and technological advancements.

Meanwhile, China on Wednesday added four US companies to its "Unreliable Entity List" for arms sales to Taiwan, Reuters reported. Companies including Pacific Rim Defense and Summit Technologies Inc. can no longer trade or invest in China.