US chipmakers NVIDIA and AMD have been caught in a row between Beijing and Washington after the US introduced tougher export rules.
The new US export rules restrict the exports of artificial intelligence chips to China and Russia, forcing companies like NVIDIA and AMD to get a licence before they can sell to those countries.
A US Securities and Exchange Commission filing from NVIDIA states that the new licence requirements have been introduced to “risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia.”
NVIDIA added that it does not export to Russia.
The filing showed that the US government informed NVIDIA that the licence would effect US-China tech exports of its A100 and the forthcoming H100 integrated circuits. The licence requirement also covers the exports of DGX and other systems which include the A100 or H100 circuits, and the A100X.
These new restrictions highlight the rising tension between the US and China. It follows Verdict’s report on increase UK government intervention in British Chinese tech deals regarding sales and ownership.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The US Commerce department told the BBC that it was using a new approach “to protect US national security and foreign policy interests.”
“This includes preventing China’s acquisition and use of US technology in the context of its military-civil fusion program to fuel its military modernisation efforts, conduct human rights abuses, and enable other malign activities,” a US Commerce spokesperson told the BBC.
In a statement, Beijing told the BBC: “The US side should immediately stop its wrongdoing, treat companies from all over the world including Chinese companies fairly, and do more things that are conducive to the stability of the world economy.”
A NVIDIA spokesperson told Verdict: “We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren’t sufficient. The only current products that the new licensing requirement applies to are A100, H100 and systems such as DGX that include them.
GlobalData is the parent company of Verdict and its sister publications.