Biden Administration Expands Restrictions on Nvidia Chips to Counter China's Influence


The Biden administration plans to block shipments to China of more advanced artificial intelligence chips designed by Nvidia and others, part of a raft of measures released Tuesday aimed at strengthening its service to Beijing of American technologies.

 I want to prevent entry. The rules, which take effect in 30 days, restrict a broad swath of advanced chips and chip-making tools to a handful of countries, including Iran and Russia, and blacklist Chinese chipmakers such as Moore Investments and Brain. .

Commerce Department Secretary Gina Raimondo told reporters late Monday that the new measures close loopholes in regulations issued last October and will likely be streamlined at least annually.

The point is to "limit China's access to advanced semiconductors that can fuel improvements in artificial intelligence and sophisticated computers that are critical to (Chinese) military operations", he asserted.

The administration is not trying to hurt Beijing economically. He said that China will still import 100 billion bones Value of US Semiconductors.

A prophet for the Chinese delegate said he was "strongly opposed" to the new restrictions, adding that "arbitrarily imposing checks or attempting to force decoupling (a) political docket application to economy and fair competition; violates the principles (and) undermines the international profitability and trade order."

Report finds US AI Feeds China's Military

The new measures show that the Biden administration is failing to slow the flow of chips and chip-making tools into China, undermining the part that businesses are playing in making American technology service Beijing.

is more than Reuters reported in June that AI chips banned by previous regulations could be bought from traders in Shenzhen, China.

Georgetown University's Center for Security and Emerging Technologies established in a June 2022 report that of the 97 individual AI chips carried by Chinese military tenders over an 8-month period in 2020, nearly all were from Nvidia, Xilinx, Intel, and were designed by Intel. Microsemi.

According to the regulations released on Tuesday, AI capabilities, with the help of supercomputing and advanced chips, improve the speed and precision of military decision-making, planning and logistics.

China-Only Chips Hit

In a statement following publication of the rules, top US AI chip  developer Nvidia said it complies with regulations and doesn't anticipate a meaningful  megahit to near- term results.

Nvidia's business has soared since the  duty of last time's rules because its China-only chips are still better than  druthers,The  establishment is  presently dealing   nearly every chip it can  land as worldwide demand outstrips  force, but would be hurt in the long term as Chinese chip  enterprises look away to fill any voids left by US companies.

The company has made chips like the A800 and H800 that operate under the previous rules to keep up business with China, and AMD, which has been hit by the rules, has said it plans a similar strategy.

Shares of Nvidia fell 3.7, while shares of AMD and another rival AI chipmaker, Intel, slid 0.6 and 1 independently.

The new rules would exempt high-end consumer chips used in laptops, smartphones and gaming, though some would be subject to licensing and declaration conditions from US officials.

Taking on Chiplet Technology

The  former rules assessed a two-rounded test that measured both a chip’s computing performance and its capability to communicate with other chips, an important measure in AI supercomputers where thousands of chips are  threaded together to bite  through huge  quantities of data.

Nvidia and Intel created special chips for the Chinese  request that retained the  important computing capabilities but limited dispatches  pets to stay inside the  former rules.

The new rules  put limits on how  important computing power a chip packs into a certain size, a measure designed to  help workarounds using new" chiplet" technology that China has said will be central to its semiconductor assiduity's future.

Chinese  enterprises Biren and Moore vestments, whose US suppliers will now face a tough licensing  demand before shipping products to them, are both startups  innovated by former Nvidia  workers and aim to  contend with the US AI chip  mammoth.

Biren said it  forcefully opposes its blacklisting and will appeal to the US government to  reevaluate the decision. Moore vestments said it  explosively disagrees with its addition to the trade blacklist.

Licensing Expanded

The new measures also extend license terms for exports of advanced chips to more than 40 new countries that present diversion losses to China and are subject to the US weapons veto.

The move appears to follow a letter filed by Nvidia in August that described it as limiting shipments of its A100 and H100 chips beyond China to other regions, including some countries in the Middle East.

 The chips will be barred from being transferred to units of enterprises located anywhere in the world if their parent companies are headquartered in China, Macau and other arms embargo countries, confirming a Reuters report.

KLA declined to  note. Lam and Applied didn't  incontinently respond to requests for comment.   US  officers said Chinese counterparts were advised the rules were coming by Raimondo, National Security Advisor Jake Sullivan, and Treasury Secretary Janet Yellen,  attesting a Reuters report.

The Semiconductor Industry Association said in a statement it was"  assessing the impact" of the new rules and  prompted the administration to work with abettors ."

 exorbitantly broad, unilateral controls risk harming the US semiconductor ecosystem without advancing  public security," the group said.