The Biden administration has announced additional limits on sales of advanced semiconductors by American firms to China, in an effort to restrict China's progress on supercomputing and artificial intelligence.
The new rules will likely halt most shipments of advanced semiconductors from the United States to Chinese data centers, which use them to produce models capable of artificial intelligence.
Chip makers seeking to sell China advanced chips or the machinery used to make them will be required to notify the government of their plans or obtain a special license.
To prevent the risk of advanced U.S. chips reaching China through third countries, chip makers will also need licenses to ship to other countries subject to U.S. arms embargoes.
The Biden administration argues that China's access to advanced technology is dangerous as it could aid the country's military in tasks like guiding hypersonic missiles or cracking top-secret U.S. codes.
The restrictions may affect Chinese companies developing AI chatbots and could weaken China's economy in the long run, as AI is transforming industries from retail to healthcare.
The limits are also expected to impact sales to China of U.S. chip makers such as Nvidia, AMD, and Intel, who earn a significant portion of their revenue from Chinese buyers.
The rules will exempt chips used in commercial applications like smartphones, laptops, electric vehicles, and gaming systems.
The Semiconductor Industry Association, which represents major chip makers, is evaluating the impact of the updated rules.
The Biden administration has been trying to counter China's growing mastery of cutting-edge technologies by investing in new chip factories in the U.S. while setting restrictions on exports of technology to China.
Source : https://www.nytimes.com/2023/10/17/business/economy/ai-chips-china-restrictions.html
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