US Government Clarifies Chip Sales to Middle East, Export License Requirements Expanded for AI Chips
Summary:
The Biden administration has clarified that it has not blocked chip sales to the Middle East, despite expanded export license requirements for AI chips from US companies. Nvidia and AMD have received letters from regulators, stating that licenses are needed to sell flagship chips to certain Middle Eastern countries. The repercussions of being excluded from China were highlighted by Nvidia in its quarterly report. The US government's actions are being closely monitored by global regulators, leading to discussions about screening Chinese foreign direct investment in crucial sectors. China, in response, plans to control the export of key raw materials for AI chip production.
The Biden administration has not prevented chip sales to the Middle East, according to a statement from the United States Department of Commerce. This clarification comes after Nvidia disclosed that the US government had expanded export license requirements for AI chips, and Advanced Micro Devices (AMD) received a similar letter from regulators. While the Commerce Department did not specify any particular companies, new rules now demand that Nvidia and AMD obtain licenses before selling flagship chips to select Middle Eastern countries. It remains unknown if these companies have applied for licenses or received any feedback regarding licensing for this region. Nvidia highlighted in its quarterly report that being excluded from China could have long-term consequences for the company. Starting in October 2022, the Biden administration implemented export controls to hinder China's development of advanced AI systems using high-performance chips from US firms. In June, US officials expressed their intent to potentially further tighten these regulations, thus limiting the computing power of chips available in the Chinese market. Global regulators are closely observing these actions by the US government. Following the initial regulations, the US reached an agreement with the Netherlands and Japan to limit exports of semiconductor manufacturing equipment to China. Officials in the UK, France, and Germany have openly discussed the possibility of screening Chinese foreign direct investment in critical sectors like AI. In response, China has announced plans to control the export of gallium and germanium products, which are essential raw materials for producing AI chips.
Published At
9/1/2023 12:40:25 PM
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