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Gina Raimondo, US Secretary of Commerce, left, Anthony Blinken, US Secretary of State, and Catherine Tay, US Trade Representative, in discussion during the US-EU Trade and Technology Council meeting in College Park, Md., US, on Monday, May 5 December 2022.
Ting Shin | bloomberg | Getty Images
shares nvidia fell 3.7% and AMD It was down about 3% in post-market pre-market trading The Wall Street Journal It reported that the federal government is considering new restrictions on exports of advanced chips used in artificial intelligence computing to China.
The export restrictions under consideration by the Commerce Department will come after the US government has already limited the computing power of chips made for Chinese use. Nvidia and AMD were affected by the pre-restriction.
Other chipmakers also fell in pre-market trading on the news. Marvel fell more than 2%, and from Broadcom And Qualcomm Both are down about 1%.
Nvidia responded to the previous limitations by building a lower-spec chip for the Chinese market. But under the new controls being considered, even that chip, the A800, will be restricted from being exported without a license, the Wall Street Journal reported.
The Journal reported that the restrictions would also apply to companies providing cloud computing solutions, which some companies have used to circumvent export controls.
Competition between the United States and China over hardware and software technology has intensified in recent years. Senior U.S. officials have identified cybersecurity threats from the Chinese state-backed threat as one of the biggest national security threats facing the United States. Sensitive technology is allegedly stolen from US companies for the benefit of Chinese domestic competitors, whether through direct industrial espionage or through joint ventures, which require US companies to partner with Chinese companies to do business inside China.
Against this backdrop, tightening controls on chip export is likely to inflame trade tensions between the two countries. US officials have tried to mitigate the potential impact, but tighter export controls are likely to jeopardize those efforts. Gina Raimondo, who as Commerce Secretary will lead the implementation of any export controls, met her Chinese counterpart in Beijing earlier this year.
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