by Mish Shedlock, Mish Talk:
Nvidia produced a chip specifically to get around Biden’s export curbs. The US just banned that chip for export too.
US Escalates Tech War, Cuts Supply of AI Chips to China
The Bureau of Industry and Security, announces New Restrictions on Advanced Computing Semiconductors, Semiconductor Manufacturing Equipment, and Supercomputing Items to Countries of Concern.
TRUTH LIVES on at https://sgtreport.tv/
Today [October 17], the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) released a package of rules designed to update export controls on advanced computing semiconductors and semiconductor manufacturing equipment, as well as items that support supercomputing applications and end-uses, to arms embargoed countries, including the PRC [People’s Republic of China, and to place additional related entities in the PRC on the Entity List.
“Export controls are a powerful national security tool, and the updates released today build on our ongoing assessment of the U.S. national security and foreign policy concerns that the PRC’s military-civil fusion and military modernization present,” said Under Secretary of Commerce for Industry and Security Alan F. Estevez. “BIS will continue to assess the security environment and technology landscape and will not hesitate to act as appropriate.”
Restrictions
- Restricts the export of chips if they exceed either of two parameters: (1) The preexisting performance threshold set in the October 7 rule; or (2) A new “performance density threshold,” which is designed to preempt future workarounds.
- Establishes a worldwide licensing requirement for export of controlled chips to any company that is headquartered in any destination subject to a U.S. arms embargo (including the PRC) or Macau, or whose ultimate parent company is headquartered in those countries, to prevent firms from countries of concern from securing controlled chips through their foreign subsidiaries and branches.
- Creates a notification requirement for a small number of high-end gaming chips to increase visibility into shipments and prevent their misuse to undermine U.S. national security.
Nvidia, Intel, AMD Hit With Export Bans
CNN reports US Escalates Tech Battle by Cutting China Off From AI Chips.
Advanced artificial intelligence chips, such as Nvidia’s H800 and A800 products, will be affected, according to a regulatory filing from the US company.
The regulations also expand export curbs beyond mainland China and Macao to 21 other countries with which the United States maintains an arms embargo, including Iran and Russia.
The measures, which have affected the shares of major American chipmakers, are set to take effect in 30 days.
Chips used in phones, video games and electric vehicles were purposefully carved out from the new rules, according to senior administration officials.
But these assurances are unlikely to placate Beijing, which has vowed to “win the battle” in core technologies in order to bolster the country’s position as a tech superpower.
In July, Beijing hit back by imposing its own curbs on exports of germanium and gallium, two elements essential for making semiconductors.
Nvidia’s (NVDA) stock closed down 4.7%, while Intel (INTC) slipped 1.4%. AMD (AMD) shares ended 1.2% lower.
In its filing, Nvidia said the rules imposed new licensing requirements for exports to China and other markets such as Saudi Arabia, the United Arab Emirates and Vietnam.
The company said its A800 chip, which was reportedly created for Chinese customers in order to circumvent last year’s restrictions, would be among the components affected.
This will work for a while and then it won’t. Previous technology bans drove China to produce its own cell phone chips.
