US escalates tech battle by cutting China off from AI chips

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US escalates tech battle by cutting China off from AI chips
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The Biden administration is reducing the types of semiconductors that American companies will be able to sell to China, citing the desire to close loopholes in existing regulations announced last year.

On Tuesday, the US Commerce Department unveiled new rules that further tighten a sweeping set of export controls first introduced in October 2022. The updated rules “will increase effectiveness of our controls and further shut off pathways to evade our restrictions,” US Commerce Secretary Gina Raimondo said in a statement.

In recent months, the United States has enlisted its allies in Europe and Asia in restricting sales of advanced chipmaking equipment to China. In July, Beijing hit back by imposing its own curbs on exports of germanium and gallium, two elements essential for making semiconductors. Nvidia, Intel, AMD affected Shares of US chipmakers fell Tuesday following the announcement of new export controls. Nvidia’s stock closed down 4.7%, while Intel slipped 1.4%. AMD shares ended 1.2% lower.

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