America imposed a ban on chip export
America imposed a ban on chip export

Some cutting-edge chip exports to China have been prohibited by the US. Many Chinese giants involved in the public cloud and artificial intelligence industries could take a significant impact from this.

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Nvidia Corporation, a chip-designing business, announced on Wednesday that US authorities have been asked to halt the export of two of the world’s best computing chips to China. These chips are utilized in equipment used in artificial intelligence applications. In addition, Advanced Micro Devices Company indicated that it is authorized under the rules to submit a second licensing application.

Artificial intelligence will suffer a setback

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As a result, it won’t be allowed to export the MI250 artificial intelligence chip to China. China has also voiced its severe disagreement with the US administration’s choice. According to Xu Xueting, a spokeswoman for the Chinese Commerce Ministry, the US judgment violated the rights of Chinese businesses. The global supply chain will be impacted by this. It is obvious that this American action would escalate the dispute in the semiconductor technology industry. We aim to stop some US corporations from providing chips to Chinese enterprises, according to Jay Goldberg, a US-based finance and strategy consultancy firm. The US made the same choice regarding Huawei.

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US-China tensions peaked last month

Significantly, there have been tensions between the US and China during the past few years in the areas of technology, industry, and politics. When US House Speaker Nancy Pelosi visited Taiwan last month, there was a great deal of hostility between the two nations. Even China had most of its forces stationed close to Taiwan’s sea border.

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