“The US and China have two superpowers in the world of chip manufacturing. Their cold rivalry for the same is well known. This time the central government of America is considering implementing new restrictions on the export of AI chips to China.”
Semiconductor chips are the lifeline of electronic, computing, automotive, and other devices. In the era of digitalization, the demand for chips will only increase and every country will intend to make as much profit as they can make.
The US and China have two superpowers in the world of chip manufacturing. Their cold rivalry for the same is well known. This time the central government of America is considering implementing new restrictions on the export of AI chips to China, in a move that could specifically target products earlier compliant with the rules.
US Department of Commerce to Set Control on Export of Chips
Nvidia and AMD, like US semiconductor makers, will face new restrictions on exports of their chips to China as early as July.
After the US imposed new restrictions on AI chip exports to China in 2022, Nvidia announced that it would be supplying a new export-compliant advanced A800 chip to China, in addition to making changes to its H100 to comply with the new regulations.
New restrictions could prevent Nvidia from selling A800 chips to China unless the company obtains a special US export license.
The ongoing chip trade war
Last year, President Biden’s administration began imposing trade restrictions on chip exports to China to prevent China from gaining access to advanced technology for military modernization and human rights violations.
Since then, several organizations and jurisdictions have been caught in the crossfire, prompting many, including the United States and China, to pass policies aimed at improving their own domestic chip manufacturing capabilities.
In response to trade restrictions, China has reportedly invested $143 billion in increasing domestic chip manufacturing, while the US government has set aside $52 billion for manufacturing incentives to boost domestic microchip production.