The United States bans the export of chips to China
Semiconductor manufacturers in the United States are no longer allowed to ship high-performance chips to China.
The move signals a new escalation in the US-China dispute over the fate of Taiwan, where Nvidia and several other manufacturers make their chips.
Photo: Alex Krause/Bloomberg
(AWP) US chip manufacturers are no longer allowed to offer high-performance chips to China due to new instructions from US authorities. The limitations affect semiconductors primarily used in artificial intelligence (AI) applications, as announced by US chip companies Nvidia and Advanced Micro Devices (AMD). The US Commerce Department said it wanted to “prevent advanced technology from falling into the wrong hands” and “protect the national security and foreign policy interests of the United States,” and did not comment on the specific criteria for the ban. The move signals a new escalation in the US-China dispute over the fate of Taiwan, where Nvidia and several other manufacturers make their chips.
An AMD spokesperson said the group has received new licensing regulations and, among other things, is not allowed to ship MI250 chips to China designed for AI applications. However, one does not assume that the new requirements will have a significant impact on business. On the other hand, Rival Nvidia said that the ban could hinder the development of its flagship H100 chip, which was announced earlier this year. Nvidia shares were down 6.6% in after-hours trading, while AMD shares were down 3.7%.
Without American chips, Chinese companies would lose the ability to process image and speech recognition data cheaply and quickly. Technologies are not just pervasive in consumer applications. They are also used in the military field – for example, to search satellite images for weapons or bases and to filter digital communications to gather intelligence.
China regards Taiwan as a breakaway province and threatens consequences for any country that maintains contacts with the democratically ruled island. The government in Beijing recently conducted military exercises around Taiwan after prominent US politician Nancy Pelosi visited Taiwan.
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