US Tightens Rules on Chip Sales to China to Curb AI Development

Mukund Kapoor
By Mukund Kapoor - Author 3 Min Read
3 Min Read

The Biden administration will soon introduce new rules to limit the sale of advanced chipsets to Chinese companies, aiming to hinder China's progress in artificial intelligence.

In Short
  • The new rules will limit the sale of specific types of graphics chips and chip-making equipment to Chinese companies.
  • Companies will now require a special license to export certain key technology to countries that could act as middlemen to China.
  • US allows waivers for South Korean and Taiwanese companies to continue some restricted tech shipments to China.

October 16, 2023: The United States is set to introduce new rules this week to make it harder for China to get advanced chipsets used in artificial intelligence (AI). These rules update last year’s restrictions and aim to close any remaining loopholes.

This step is taken as a part of the ongoing effort by the US government to curb China’s growth in artificial intelligence technology.

According to reports, the new rules are not just a blanket ban. They focus on specific types of chips and equipment.

The rules will limit the sale of graphics chips used in AI and advanced chip-making machines to Chinese companies. This change is a big deal because graphics chips are key in making AI work well.

These new measures will not just be about Chinese companies in China but also their offices in other countries. Companies will now need a special license to send certain technology to countries that might send it to China.

The US government is also listening to tech leaders who say they still want to do business with China, which is a huge market for chips.

So, the new rules will allow the sale of all chipsets to China except the powerful ones used in gaming PCs. Before shipping specific advanced consumer chips to China, companies will need to tell the US government.

The focus of the new rules is on a special part of the graphics chip called the ‘accelerator.’

Big computer centers use this part to help AI learn things faster. Some companies like NVIDIA have even made special chip models just for China to get around last year’s rules.

But these new rules will make it harder for that to happen again.

The US is not just thinking about China. They have also given special permission to companies in South Korea and Taiwan. This allows them to send some restricted tech to their factories in China.

Companies like Samsung and Taiwan Semiconductor Manufacturing will benefit from this.


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By Mukund Kapoor Author
Mukund Kapoor, the enthusiastic author and creator of GreatAIPrompts, is driven by his passion for all things AI. With a special knack for simplifying complex AI concepts, he's committed to helping readers of all levels - be it beginners or experts - navigate the intriguing world of artificial intelligence. Through GreatAIPrompts, Mukund ensures that readers always have access to the most recent and relevant AI news, tools, and insights. His dedication to quality, accuracy, and clarity is what sets his blog apart, making it a reliable go-to source for anyone interested in unlocking the potential of AI. For more information visit Author Bio.
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