US Implements New Restrictions on AI Chip Exports in Ongoing Trade War with China
The United States has intensified its trade dispute with China by imposing fresh restrictions on the export of AI chips. These latest restrictions follow the introduction of advanced chip export limitations to China and other nations last year, with the primary goal of preventing these advanced hardware components from being used in military applications, especially in countries like Russia and China.
The US Secretary of Commerce, Gina M. Raimondo, has stated that the updated rules are aimed at closing potential loopholes that could be exploited to bypass the existing restrictions. Raimondo emphasised that these controls are specifically focused on preventing military applications and addressing national security threats posed by the People’s Republic of China government’s military-civil fusion strategy.
Nvidia, a prominent chip manufacturer, disclosed the details of the new restrictions in a filing with the US Securities and Exchange Commission (SEC). Under these regulations, the company anticipates facing additional licencing requirements for the export of products exceeding specific performance thresholds.
These restrictions encompass Nvidia’s A100, A800, H100, H800, L40, L40S, and RTX 4090 chips, as well as systems that incorporate these chips, such as the Nvidia DGX and HGX systems. It is worth noting that Nvidia designed the H800 chip as a response to earlier trade restrictions that had impacted its ability to sell the H100 to China.
In the SEC filing, Nvidia expressed concerns about the potential impacts of the licencing requirement, such as delays in product development, support for existing customers, and the need to transition certain operations out of countries affected by the restrictions.
Secretary Raimondo has assured that the US government aims to safeguard national security while minimising unintended disruptions to trade flows. She added that these rules are expected to affect only a small fraction of chip exports to China.
These new restrictions have broader implications, affecting other chipmakers and leading to declines in the stock prices of companies like Broadcom and Intel. Several other countries have also reduced AI chip exports to China earlier this year as part of this ongoing trade conflict.
In June, the Netherlands implemented export controls targeting technologies from ASML, a company based in Veldhoven. In July, China responded to these sanctions by announcing export restrictions on gallium and germanium, two metals crucial to the semiconductor sector.
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