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US Considers AI Chip Export Restrictions to China, NVIDIA and AMD Shares Drop

Updated: Jan 5

The United States is reportedly planning to impose restrictions on AI chip exports to China, causing stock prices of NVIDIA and AMD to decline.

A printed circuit board using semiconductor chips displays the flags of China and the United States.
Credits: REUTERS

The United States is contemplating imposing fresh restrictions on the export of artificial intelligence chips to China, as per the Wall Street Journal's sources. Shares of NVIDIA fell over 2% in extended trading, while Advanced Micro Devices (AMD) experienced a decline of approximately 1.5% following the news.

According to the report, the Commerce Department could halt the shipment of chips produced by NVIDIA and other chip manufacturers to Chinese customers as early as July. This situation puts NVIDIA, Micron, and AMD, among other American chipmakers, in the midst of the ongoing conflict between China and the Biden administration.

In September, U.S. officials requested NVIDIA to cease exporting two leading computing chips for AI work to China. Consequently, NVIDIA, led by Jensen Huang, announced its plan to introduce the A800 advanced chip in China to adhere to export control regulations. Furthermore, the company modified its flagship H100 chip earlier this year to comply with the regulations.

However, the new restrictions currently under consideration by the Commerce Department would prohibit the sale of A800 chips without a special U.S. export license, as stated in the report.

At the time of this writing, the Commerce Department had not responded to Reuters' request for comment.

  • The United States is considering imposing new restrictions on AI chip exports to China.

  • NVIDIA and AMD stocks experienced declines following this news.

  • The Commerce Department may halt shipments of chips from NVIDIA and other manufacturers to China in July.

  • NVIDIA, Micron, and AMD are caught in the crossfire between China and the Biden administration.

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