US restricts chip exports to China

A trade war has been going on between the US and China for some time now. Now the US government wants to hit China where it hurts. The US yesterday imposed a ban on the sale of advanced chips to trade rival China. Reuters news agency reported this in a report news. With this, the US wants to put an end to the country’s high-tech development.

The tension between China and Taiwan is the reason behind the creation of the US embargo. Denying China the chips would make it difficult to perform advanced tasks like facial recognition and artificial intelligence. They also don’t want the chips to get into the hands of the Chinese military. The Chinese government has already announced that the United States will impose a technical blockade on this. They also believe the Americans are complicating global logistics of chips.

The American exception

Chip manufacturer Nvidia, for example, was told it would not be allowed to export its chips. Reuters. Nvidia immediately made it clear it was not happy with the ban. According to them, this will affect their sales figures and their A100 and H100 chips. The company is developing it specifically for machine learning tasks. The US government has already partially lifted the ban on this today. Nvidia will allow exports of development-related A100 and H100 chips through its facilities in Hong Kong. The company will be allowed to do this till March 1, 2023.

AMD also announced that it has received an export ban. They are no longer allowed to export their MI250 chips aimed at artificial intelligence to China. Their less advanced MI100 chips will be out of the block. According to chip manufacturer AMD, the export ban will have no impact on their sales figures.