The U.S. is reportedly considering imposing additional restrictions on China's use of AI chip technology.

• On Tuesday, Bloomberg reported that the U.S. is considering imposing additional limitations on China's use of AI chip technology.
• According to Bloomberg, the Biden administration is considering actions aimed at advanced chip technology known as gate all-around, based on information from sources.
• New transistor architecture, known as GAA, has the potential to enhance performance and reduce power consumption.

On Tuesday, Bloomberg reported that the U.S. may impose stricter limits on China's use of technology crucial for artificial intelligence.

The Biden administration is considering actions related to gate all-around (GAA) high-tech chip architecture, which could result in improved performance and reduced power consumption, according to Bloomberg, based on sources familiar with the matter.

Samsung Electronics in South Korea has reportedly begun manufacturing 3-nanometer chips using GAA technology and plans to incorporate GAA into its upcoming 2-nanometer chips.

In Wednesday morning trading in Asia, TSMC and Samsung Electronics saw their shares rise by 1.6% and 0.4%, respectively.

According to Bloomberg, the U.S. is still in the process of determining the scope of a potential rule and it is unclear when this process will end. The report states that the U.S. measures aim to make it more challenging for China to develop advanced computing systems needed to create and run AI models.

The Commerce Department and the Bureau of Industry and Security did not provide a comment when CNBC requested one.

In October 2022, the U.S. implemented export controls to limit China's access to advanced chip technology, specifically those used in AI applications. The country then tightened its export restrictions on AI chips to China in October 2023, aiming to halt shipments of the more advanced chips from Nvidia and other companies.

According to Bloomberg, a draft version of the potential GAA restrictions was deemed "too broad." It was unclear if the measure would target China's GAA development or prevent foreign companies from selling to China.

In May, China invested 344 billion Chinese yuan ($47.5 billion) into a third semiconductor fund in an effort to increase "self-reliance in science and technology." This move comes as countries such as the U.S. and the Netherlands attempt to limit China's technological power.

This year, the Dutch government prohibited the export of certain chip equipment manufacturer's tools to China.

Read the full report on Bloomberg.