US will "cut off" China from more Nvidia chips, restrictions will be extended on Russia and Iran

The Biden administration plans to ban shipments of more advanced AI chips developed by Nvidia and other companies to China, a move aimed at preventing Beijing from acquiring advanced American technology to boost its military.

Source: Reuters

Details: The rules, which will take effect in 30 days, restrict access to a wider range of advanced chips and chip-making tools for more countries, including Iran and Russia, and blacklist Chinese chip makers Moore Threads and Biren.

The new measures close gaps in rules published last October and are likely to be updated "at least annually," US Commerce Secretary Gina Raimondo told reporters.

The goal is to limit China's access to "advanced semiconductors that can facilitate breakthroughs in artificial intelligence and sophisticated computers that are critical to (China's) military applications," Raimondo explained.

A Chinese embassy spokesman said China "firmly opposes" the new restrictions, adding that "arbitrarily placing curbs or forcibly seeking decoupling to serve (a) political agenda violates the principles of market economy and fair competition (and) undermines the international economic and trading order."

"The new measures demonstrate the Biden administration is struggling to slow the flow of chips and chipmaking tools into China, even as concerns mount over the role U.S. technology is playing in modernizing Beijing's military," Reuters writes.

Following the release of the updated rules, leading US AI chipmaker Nvidia said it was complying with the rules and did not expect a significant impact on short-term results.

For reference:

The U.S. will take steps to prevent US semiconductor manufacturers from selling semiconductors to China to circumvent government restrictions as part of the Biden administration's upcoming move to block more exports of AI chips.

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