U.S. Commerce Secretary Gina Raimondo, from left, U.S. Secretary of State Anthony Blinken and U.S. Trade Representative Catherine Day discuss a meeting of the U.S.-EU Trade and Technology Council in College Park, Maryland, U.S., on Monday , December 5, 2022.
Shen Ting | Bloomberg | Getty Images
shares Nvidia down 3.7% Advanced Micro DevicesCompany It was down about 3% in premarket trading wall street journal The federal government is reportedly considering new restrictions on the export to China of advanced chips used in artificial intelligence computing.
The export restrictions under consideration would be imposed by the Commerce Department and come after the U.S. government already limited the computing power of chips intended for use in China. Nvidia and AMD were affected by previous restrictions.
Other chipmakers also fell in premarket trading on the news. Marvell fall by more than 2%, and Broadcom and Qualcomm Both fell about 1%.
Nvidia responded to previous restrictions by producing a lower-spec chip for the Chinese market. But even the A800 chip would be subject to export restrictions without a license under new controls being considered, The Wall Street Journal reported.
The restrictions also apply to companies that offer cloud computing solutions, which some companies use to circumvent export controls, according to the Wall Street Journal.
Competition between the U.S. and China in hardware and software technology has intensified in recent years. The cybersecurity threat from Chinese state support has been identified by senior U.S. officials as one of the greatest national security threats facing the United States. Sensitive technology from U.S. companies is allegedly stolen to benefit Chinese domestic competitors, whether through outright industrial espionage or through joint venture programs that require U.S. companies to partner with Chinese companies to do business in China.
Against this backdrop, tightening of chip export controls could further escalate trade tensions between the two countries. U.S. officials have tried to mitigate the potential impact, but tightening export controls could jeopardize those efforts. Enforcement of the export controls will be led by Gina Raimondo, who met her Chinese counterpart in Beijing earlier this year, as Commerce Secretary.
Nvidia declined to comment, as did the Bureau of Industry and Security, the Commerce Department’s export controls arm. AMD did not immediately respond to a request for comment.
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