The US government is tightening its restrictions on advanced technology exports to China, even blocking AMD from selling AI chips that were specifically designed with lower performance to comply with existing trade rules.
According to a recent report from Bloomberg, AMD attempted to get approval from the US Commerce Department to sell an artificial intelligence processor chip to China. This chip was intentionally lower-powered compared to AMD’s offerings outside of China, engineered to meet current US export control restrictions.
Table of Contents
US Government Tightens Restrictions on AI Chip Exports to China
However, US officials determined that even this nerfed chipset was still too technologically advanced to allow sale to China. They informed AMD that the company would need to obtain a special license from the Commerce Department’s Bureau of Industry and Security before the AI chip could be exported to China.
The move is part of a broader crackdown by the US government on preventing cutting-edge technologies from being exported to China over national security concerns. Officials are wary of China’s military potentially getting access to and benefiting from advanced US technologies like AI chips.
Just a few months ago in October, the US implemented restrictions to halt the shipment to China of more powerful AI chips made by companies like Nvidia. A range of measures were enacted to cut off Beijing’s access to state-of-the-art American technologies that could be used to bolster China’s military capabilities.
Neither AMD nor the Commerce Department have issued public statements in response to the Bloomberg report so far. But the reported denial suggests US regulators are vigilant about enforcing trade restrictions, even for products specifically designed with lower specs for export purposes.
The situation underscores the complex balance the US is trying to strike in maintaining a technological edge over China while still allowing some degree of commerce. But national security remains the top priority.
