crypto News The United States introduced restrictions on the supply of AI chips to China

The United States introduced restrictions on the supply of AI chips to China

The United States introduced restrictions on the supply of AI chips to China

US Presidential Administration Joe Biden published a set of export control measures aimed at banning the supply of advanced American chips to China. This writes Reuters.

New restrictions will affect 28 Chinese companies. Now chip manufacturers should receive an export license. The US government noted that most applications will be rejected.

Restrictions will affect the supply of chips for supercomputers and processing tasks of artificial intelligence. Sanctions will not affect consumer processors.

According to experts, the United States has not introduced such restrictions against China since the 1990s. They are based on the law on direct foreign production, according to which the US authorities can stop the sale of products created using American technologies at any time.

If successful, the measures taken can freeze the industry of the PRC to develop microcircuits, experts say.

“This will drop the Chinese on years ago,” said Jim Lewis, an expert on technology and cybersecurity.

According to a representative of the US government, restrictions should prevent foreign firms from selling improved chips or tools for their production in China. However, they admitted that they did not receive any promises from the allied states regarding the adoption of similar measures.

“We understand that one -way control that we introduce will lose efficiency over time if other countries do not join us,” said one of the officials.

PRC authorities criticized the decision of the United States. The Chinese Ministry of Trade said that restrictions are damaged by trade and economic exchange between producers of the two countries and threaten the stability of global supply chains.

“The United States must immediately stop offenses and be fair to companies from around the world,” the department said.

The official representative of the Ministry of Foreign Affairs of China Mao Nin called this step an abuse aimed at strengthening the “technological hegemony” of the United States.

The announcement of anti -Chinese sanctions collapsed shares of the companies of the semiconductor sector. TSMC securities have fallen in price by 7%, reaching a minimum since May 2021. The cost of Samsung shares fell 3.9%, and SK Hynix – by 3.5%. In total, the capitalization of the companies of the semiconductor sector decreased by $ 240 billion.

Shares of Chinese manufacturers of chips and technical gigants have also lost in price.

Recall that in September the US government limited the supply of AI processors to China and Russia. The chips of NVIDIA and AMD are banned.

In the same month, experts said that China manufacturers will quickly create an alternative to American AI trackers.

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