The U.S. has blacklisted Chinese memory chip maker YMTC and 21 "major" Chinese players in the artificial intelligence chip industry, Reuters reported.

YMTC, which has long been in the U.S. government's crosshairs, was added to the list because of concerns that it could divert U.S. technology to previously blacklisted Chinese tech giants Huawei and Hikvision. The move, outlined in the Federal Register, would prohibit YMTC suppliers from supplying it from the U.S. without a license, which is difficult to obtain.

The 21 Chinese artificial intelligence chipmakers added to the trade blacklist, which includes Cambricon Technologies Corp and CETC, will face even stiffer penalties as the U.S. government effectively blocks their access to technology produced anywhere in the world on U.S. equipment.