NVIDIA Low-Spec Chips Also Facing Export Restrictions to China... "US Considering Expansion of Semiconductor Regulation Targets"

"Announcement Possibly Early Next Month... Expected After Yellen's Visit to China"
NVIDIA and AMD Stocks Down 3% in After-Hours Trading

The Biden administration in the United States may expand export controls on AI semiconductors to China as early as the beginning of next month, the Wall Street Journal (WSJ) reported on the 27th (local time), citing sources. It is expected that the export controls will be extended to lower-spec semiconductors compared to the high-performance AI semiconductors that were previously regulated.

According to the WSJ report, the U.S. Department of Commerce is considering adding export controls that would require other semiconductor manufacturers, such as Nvidia and AMD, to obtain licenses for exporting AI semiconductors to China. Last October, the department imposed licensing requirements on Nvidia’s export of cutting-edge AI semiconductors to China, and this expansion would mean broadening those controls.

Nvidia has previously exported high-performance semiconductors like the A100 and H100 to China. However, the U.S. government, citing concerns that China could use them for military purposes, imposed controls requiring Department of Commerce approval for exports after the Semiconductor Support Act was fully implemented in August last year. Consequently, Nvidia has been supplying lower-spec models such as the A800 and H800 to China. The A800 operates slower than the A100, capable of 400GB of computation per second, whereas the A100 supports 600GB per second.

The additional measures from the Biden administration are reported to include making it so that Nvidia cannot export the A800 to China without government approval. Sources also said that restrictions on cloud services provided to Chinese AI companies are being considered.

This move comes amid a global surge in generative AI following the release of ChatGPT last year. As AI’s importance grows, not only the market but also the White House and Congress are paying close attention to national security issues related to AI. However, the immediate priority is to find ways to protect critical technologies while minimizing the impact on domestic and allied companies.

The WSJ stated, "It is unclear when these new regulations will be announced as semiconductor manufacturers are pressuring the Biden administration to abandon or ease the new controls." It added that the announcement might be delayed until after U.S. Secretary of State Antony Blinken and Treasury Secretary Janet Yellen complete their visits to China in early next month.

Meanwhile, following the report, concerns over reduced profits caused Nvidia and AMD shares to plunge more than 3% in after-hours trading.

This content was produced with the assistance of AI translation services.