U.S.: Administration plans new restrictions on AI chip shipments to China

U.S.: Administration plans new restrictions on AI chip shipments to China

Washington , 9/18/2022

The U.S. Commerce Department is expected to publish new rules in October restricting the supply of AI chips and related devices to China. The rules would formally codify plans already communicated in letters to KLA Corp, Lam Research Corp, Applied Materials Inc, Nvidia and AMD.

The letters prohibit KLA, Lam and Applied Materials from exporting chipmaking equipment to Chinese factories that make certain advanced semiconductors unless those companies have a license from the Commerce Ministry.

The agency also intends to codify its new restrictions prohibiting Nvidia and AMD from exporting certain AI computer chips to China unless licenses are granted.

The U.S. government’s rationale for these measures is that (1) they would eliminate the risk that this technology could be used by the Chinese military. 2. they will hinder much of China’s AI development including research and development in government research institutes and prestigious universities because these institutions rely on extremely large amounts of computing power. Exactly what the U.S.-made chips will enable the Chinese to do.