US Plans New Export Control Measures to Curb Chinese Access to Advanced AI Chips

 

advanced semiconductor 

The US government is preparing to implement new export control rules aimed at limiting Chinese companies' access to advanced artificial intelligence (AI) chips sourced from third-party countries. Sources familiar with the matter stated that the new regulations, expected to be announced before the end of this month, will focus on controlling the global distribution of powerful graphics processing units (GPUs), which are critical for training AI models.

The measure seeks to close loopholes in existing rules, particularly in light of growing concerns over China's efforts to circumvent US sanctions by acquiring restricted chips through intermediary nations. This move represents a significant escalation from earlier chip-related sanctions introduced in December 2024, when the US added 140 Chinese semiconductor firms to a trade blacklist and imposed a ban on the sale of high-bandwidth memory chips to China.

The new regulations aim to prevent Chinese companies from accessing GPUs via third-party countries, which have become key hubs for smuggling restricted chips. One of the primary provisions of the rule will be the establishment of a "country cap" that limits the shipment of GPUs to specific locations. Additionally, the measure includes a worldwide licensing system with reporting requirements, helping to monitor and control the global establishment of AI development hubs using advanced chips.

Despite previous export controls, countries like Singapore and Malaysia have remained prominent hubs for smuggling chips into China, as they are not covered by US restrictions. As a result, Chinese firms have developed a complex smuggling network to bypass export controls, with some even hiring smugglers to transport restricted Nvidia GPUs into mainland China.

The rule, developed with input from US Secretary of Commerce Gina Raimondo and National Security Adviser Jake Sullivan, will further strengthen US efforts to maintain its leadership in AI technology and prevent Chinese entities from accessing crucial resources for their AI development.

The US Department of Commerce declined to comment on the matter as of now, but the new export controls reflect an ongoing effort to curb China's access to sensitive technology amid growing geopolitical tensions between the two nations