US tackles loopholes in curbs on AI chip exports to China

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October 17, 2023

The U.S. will implement new measures to prevent American chipmakers from selling semiconductors to China that bypass government restrictions, in an effort to block further AI chip exports, according to an anonymous U.S. official. These rules will be added to existing restrictions on advanced chip and chipmaking equipment shipments to China, with details expected to emerge soon. The new regulations will prohibit certain AI chips that almost meet current technical standards while requiring companies to report other shipments. This move coincides with U.S. attempts to improve relations with China but could complicate diplomatic efforts. It aims to prevent U.S. tech from strengthening China's military, while China views it as an abuse of export controls. Last year, Nvidia was unable to ship its advanced AI chips to Chinese customers due to government restrictions, leading them to release less sophisticated variants.

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