Gina Raimondo, US Secretary of Commerce, Antony Blinken, U.S. Secretary of State, and Katherine Tai, US Trade Representative, engaged in a discussion during the US-EU Trade and Technology Council meeting in College Park, Maryland, on December 5, 2022.
Ting Shen | Bloomberg | Getty Images
Shares of Nvidia dipped by 3.7% and AMD fell by about 3% in premarket trading following a report by The Wall Street Journal that the US federal government is considering new restrictions on the export of advanced chips used in artificial intelligence computing to China.
The proposed export restrictions, which would be imposed by the Commerce Department, come after the US government had already limited the computing power of chips manufactured for Chinese use. Nvidia and AMD were previously affected by these limitations.
Other chipmakers also saw declines in premarket trading as a result of this news. Marvell dipped more than 2%, while Broadcom and Qualcomm both dropped approximately 1%.
In response to the previous restrictions, Nvidia developed a lower-spec chip, the A800, specifically for the Chinese market. However, under the new controls being considered, even the A800 would require an export license.
The Journal also reported that the restrictions would extend to companies providing cloud-based computing solutions, which some companies have used to bypass export controls.
The competition between the US and China in hardware and software technology has intensified in recent years. Top US officials have identified cybersecurity threats from state-backed Chinese actors as one of the country’s greatest national security risks. Chinese competitors have allegedly stolen sensitive technology from American companies, either through industrial espionage or joint-venture projects that require American companies to partner with Chinese firms.
In this context, stricter chip export controls are likely to further escalate trade tensions between the two nations. Although US officials have attempted to mitigate potential impacts, tighter export controls could jeopardize these efforts. Earlier this year, Secretary of Commerce Gina Raimondo met with her Chinese counterpart in Beijing.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
