US Chip Makers Hit by New China Export Rule
US chip makers hit by new China export rule:
Nvidia says the US government requires a new licence, effective immediately, to address the risk of chips being "used in, or diverted to a 'military end use'... in China and Russia".
There are fears the rule could lead to millions of dollars in lost revenue.
Shares of both chipmakers slipped in after-hours trading in New York.
Nvidia's shares were down by 6.6% while AMD slipped 3.7%.
[...] In a statement, Beijing said "The US side should immediately stop its wrongdoing, treat companies from all over the world including Chinese companies fairly, and do more things that are conducive to the stability of the world economy."
No GPUs for You: US Blocks Sales of AI Chips to China and Russia
No GPUs for you: US blocks sales of AI chips to China and Russia:
In a Securities and Exchange Commission filing last Friday, Nvidia reported that US government officials have ordered restrictions on sales of its top AI chips to China and Russia. The new restrictions (in the form of licensing requirements, subject to approval by the US government) include the powerful A100 Tensor Core GPU, the upcoming H100, and any chips of equivalent power or systems that incorporate them. The goal is to "address the risk that the covered products may be used in, or diverted to, a 'military end use' or 'military end user' in China and Russia," according to Nvidia, which notes that the firm already does not sell products to customers in Russia.
Reuters reports that the Department of Commerce intends for the new policy to "keep advanced technologies out of the wrong hands." China isn't happy about the restrictions, calling the move part of a "tech blockade." The US has also restricted sales of AMD's MI250 Accelerator AI chip to China. Whether this effort will have any effect on China's AI capability in the long term remains to be seen, as Chinese firms have begun developing their own GPUs for graphics and AI use.
Related Stories
China's cyberspace regulator said on Sunday that products made by U.S. memory chip manufacturer Micron Technology had failed its network security review and that it would bar operators of key infrastructure from procuring from the firm:
The decision, announced amid a dispute over chip technology between Washington and Beijing, could include sectors ranging from transport to finance, according to China's broad definition of critical information infrastructure.
"The review found that Micron's products have serious network security risks, which pose significant security risks to China's critical information infrastructure supply chain, affecting China's national security," the Cyberspace Administration of China (CAC) said in a statement.
[...] U.S. officials, including members of a U.S. congressional select committee on competition with China, did not immediately respond to requests for comment.
Micron derives around 10% of its revenue from China, but it is not clear if the decision affects the company's sales to non-Chinese customers in the country.
Also at The Register, MarketWatch and ABC News.
Related:
- US Restrictions See China's Chip Imports Plummet 27% in First Two Months of 2023
- Netherlands Refuses to Summarily Agree to US Export Restrictions on China Over Silicon Chips
- US Chip Makers Hit by New China Export Rule
(Score: 4, Interesting) by legont on Friday September 02 2022, @05:20PM
SMIC took two years to achieve the leap from 14-nm to 7-nm, while it was 3 for TSMC and 5 for Samsung. That's in spite of embargo on "special equipment" whatever it might be.
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.
(Score: 3, Touché) by Anonymous Coward on Friday September 02 2022, @06:06PM
Is this the same China that's performing live-fire military exercises, threatening military consequences, inflammatory rhetoric, etc., regarding Taiwan and the South China Sea, and now blockading US ships there? Naaa, can't be.
(Score: 2, Funny) by Anonymous Coward on Friday September 02 2022, @06:17PM
https://www.youtube.com/watch?v=ALi78xSaP0Y [youtube.com]
Love the smell of pissing contests in the morning!
(Score: 1, Interesting) by Anonymous Coward on Friday September 02 2022, @08:54PM (2 children)
Wasn't there news recently that Russia was making smart bombs (etc) using processors originally destined for dishwashers? Those cheap impeded systems on chip are the ones that should be embargoed!
(Score: 0) by Anonymous Coward on Friday September 02 2022, @09:10PM (1 child)
s/impeded/embedded
(Score: 0) by Anonymous Coward on Saturday September 03 2022, @03:27PM
no.. you had it right the first time