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The Biden administration is considering imposing new restrictions on China’s access to AI memory chips and the equipment used to manufacture them.?
This move, expected as early as this month, aims to limit Chinese firms’ access to critical AI components, which could significantly alter the global semiconductor landscape, and intensify the nations’ rivalry.
US Plans to Restrict AI Chip Access for China
According to a Bloomberg report, the proposed restrictions are designed to prevent Micron Technology, SK Hynix, and Samsung Electronics from supplying Chinese companies with high-bandwidth memory (HBM) chips. Given their dominance in the global HBM market, this move is expected to have significant implications.
*US WEIGHS NEW RESTRICTIONS ON CHINA’S ACCESS TO AI MEMORY CHIPS
*NEW CHIP LIMITS FROM US COULD COME AS SOON AS NEXT MONTH
*SK HYNIX AND SAMSUNG COULD BE AFFECTED BY RULE PLANNED BY US
*CHIP MEASURES DESCRIBED BY PEOPLE FAMILIAR WITH DISCUSSIONS $AMD $NVDA $INTC $QCOM etc— FSMN (@faststocknewss) July 31, 2024
The measure would specifically target HBM2 and other advanced chips, such as the HBM3 and HBM3E, which are the most advanced AI memory chips currently in production.
Additionally, the restrictions would extend to the tools required to manufacture these chips. Meanwhile, Micron Technology, based in Boise, Idaho, is expected to be largely unaffected by these potential restrictions.
The company stopped selling its HBM products to China in 2023 after Beijing banned its memory chips in critical infrastructure.
While the exact mechanism for restricting South Korean firms is still unclear, one possibility is the use of the foreign direct product rule (FDPR). The FDPR allows Washington to control foreign-made products that incorporate any form of American technology, including software and equipment.
