Gina Raimondo, US secretary of Commerce, from left, Antony Blinken, U.S. secretary of state, and Katherine Tai, US trade representative, at a discussion during the US-EU Trade and Technology Council meeting in College Park, Maryland, US, on Monday, Dec. 5, 2022.
Ting Shen | Bloomberg | Getty Images
Shares of Nvidia and Advanced Micro Devices both fell more than 2% in early trading after The Wall Street Journal reported the federal government is weighing new restrictions on exports of sophisticated chips used in artificial intelligence computing to China.
The export restrictions under consideration would be imposed by the Commerce Department and would come after the U.S. government already limited the computing power of chips made for Chinese use. Nvidia and AMD had been impacted by the prior limitation.
Other chipmakers also fell on the news. Marvell and Broadcom both dropped less than 1%, while Qualcomm slipped more than 2%.
Nvidia responded to the earlier restrictions by building a lower-spec chip for the Chinese market. But under the new controls being considered, even that chip, the A800, would be export restricted without licensing, the Journal reported.
The restrictions would also apply to companies that offer cloud-based computing solutions, the Journal reported, which have been used by some companies to skirt export controls.
Competition between the U.S. and China over hardware and software technology has amplified in recent years. Cybersecurity threats from Chinese state-backed threats have been identified by top U.S. officials as one of the top national security threats facing the United States. Sensitive technology has allegedly been stolen from American companies to benefit Chinese domestic competitors, whether through outright industrial espionage or through joint-venture projects, which require American companies to partner with Chinese firms to do business within China.
Against this backdrop, tightened chip export controls would likely further inflame…
Read the full article here
Leave a Reply