The Biden administration is considering new restrictions on semiconductor equipment and AI memory chip sales to China, Bloomberg reported on Thursday, citing people familiar with the matter.

The report said that an announcement regarding the restrictions could be made as soon as next week.

The latest plan is to add only some of Huawei's suppliers to the trade restriction list, with notable exclusions like ChangXin Memory Technologies, according to Bloomberg.

It added that the rule could consider sanctions on two chip factories owned by Semiconductor Manufacturing International, Huawei's chipmaking partner.

Sources told Bloomberg that over 100 Chinese semiconductor equipment firms could also face sanctions, creating concerns about unfair competition with global rivals like Tokyo Electron and ASML (ASML).

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)