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US Considers New Regulations on Export of AI Chips to China: Report

US Considers New Regulations on Export of AI Chips to China: Report

Nvidia, Micron and AMD will be blocked from selling certain chips to China.

By Reuters | Updated: 28 June 2023 09:18 IST

US Considers New Regulations on Export of AI Chips to China: Report

Photo Credit: Reuters

US will reportedly stop shipments of chips made by chip companies to customers in China as early as July

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Highlights

Shares of Nvidia fell more than 2 percent on the news in extended trading
Nvidia tweaked its flagship H100 chip early this year
Nvidia said it will offer A800 chip in China to meet export control rule

The United States is considering new restrictions on exports of artificial intelligence (AI) chips to China, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Shares of Nvidia fell more than 2 percent, while Advanced Micro Devices (AMD) fell about 1.5 percent on the news in extended trading.

The Commerce Department will stop the shipments of chips made by Nvidia and other chip companies to customers in China as early as July, the report said.

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Nvidia, Micron, and AMD are among the US chipmakers caught in the crossfire between China and the Biden administration.

In September, Nvidia had said that US officials asked the company to stop exporting two top computing chips for artificial intelligence work to China.

Months later, Jensen Huang-led Nvidia said it will offer a new advanced chip called the A800 in China to meet export control rules. The company also tweaked its flagship H100 chip early this year to comply with regulations.

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But the new curbs being mulled by the department would ban the sale of even A800 chips without a special U.S. export license, the report added.

The Commerce Department did not immediately respond to a Reuters request for comment.

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