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US would impose new limits on China's access to AI chip technology

US would impose new limits on China's access to AI chip technology
US would impose new limits on China's access to AI chip technology


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The United States could further tighten restrictions on China's access to chip technology critical to artificial intelligence, Bloomberg reported Tuesday.

The Biden administration is considering actions that would target the high-tech chip architecture known as gate all-around, Bloomberg reported, citing sources familiar with the matter. GAA refers to a new transistor architecture that could lead to better performance and reduced power consumption.

South Korean company Samsung Electronics has already started production of 3-nanometer chips with GAA technology. Taiwan Semiconductor Manufacturing Company reportedly plans to include GAA in its upcoming 2-nanometer chips.

Shares of TSMC and Samsung Electronics rose 1.6% and 0.4%, respectively, on Wednesday morning in Asia.

Bloomberg noted that its sources said the United States was still “determining the scope of a potential rule” and that it was not immediately clear when that process would conclude. The report said the U.S. measures would seek to make it more difficult for China to establish the advanced computing systems needed to build and run AI models.

The U.S. Department of Commerce and the Bureau of Industry and Security, which oversees export controls, did not immediately respond to CNBC's request for comment.

The United States has adopted a series of export controls starting in October 2022 aimed at restricting China's access to advanced chip technology, particularly those used in AI applications. It then further tightened restrictions on the export of AI chips to China in October last year, seeking to disrupt shipments of the most advanced chips from Nvidia and other companies.

Bloomberg reported that a draft version of the GAA's potential restrictions had been deemed “too broad”. He added that it was unclear whether the measure would target the development of GAA in China or prevent foreign companies from selling into China.

In May, China invested 344 billion Chinese yuan ($47.5 billion) in a third semiconductor fund, seen as a move to strengthen “science and technology self-reliance.” The move comes as countries like the United States and the Netherlands seek to rein in China's technological might.

Earlier this year, the Dutch government banned chip equipment maker ASML from exporting some of its tools to China.

Read the full report on Bloomberg.




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