The Biden administration announced on Tuesday that it will halt shipments of advanced artificial intelligence chips to China. The new rules will also restrict a wider range of advanced chips and chipmaking tools to a broader group of countries, including Iran and Russia.
The measures seek to hamper China’s military development by limiting its access to advanced semiconductors that enable breakthroughs in AI and other sophisticated computing used in military applications. The announcement also placed Chinese chip designers Moore Thread and Biren on a blacklist. Nvidia stated it does not expect a significant financial impact from these trade restrictions and plans to fully comply with regulations. Despite these bolstered rules, China will still import hundreds of billions of dollars of semiconductors from the U.S. as most consumer-grade chips are exempt. Chip exports to 40 other countries will also now be subject to expanded licensing requirements. The listed nations are subject to U.S. arms embargoes or present risks of diverting chips to China.