The information was published by the Reuters agency on Tuesday, citing the US government, saying that the measures affect NVIDIA, which is one of the leaders in the field of chip production, as well as other companies.

Slowdown of military development

The new measures aim to slow China's military development by closing loopholes in regulations that were issued last October. According to US Commerce Secretary Gina Raimond, these measures are expected to be updated every year. At the same time, she added that access to artificial semiconductors and a breakthrough in the field of artificial intelligence is key to China's military use.

Companies solve the problem in their own way

Washington and Beijing have been competing quite fiercely in the field of technology for several years. However, the large-scale measures of the past year have deepened this tension. The chip manufacturer Nvidia should also be affected by the new measures, which responded to last year's by producing the A800 and H800 chips, which met the new requirements at the time. This is unlikely to be the case after the current elimination of loopholes in the rules, which would result in a halt in the supply of these chips to the Chinese market. AMD also plans to adjust the parameters in order to continue sales in the Chinese market.

Meaning of restrictions in practice

The Biden administration imposed international restrictions last year that banned companies anywhere in the world from selling to China, especially chips used in artificial intelligence and supercomputers, if they are made using American technology, software or machinery. Exports were specifically prohibited to those Chinese companies placed on the Entity List due to national security concerns. The new restrictions, which are meant to complement the original ones, remove the established communication speed limits and focus on the processing power of the chips and the power density.

An opportunity for Chinese manufacturers?

Where one loses, the other gains. And so it can be in the case of new restrictions for American companies. As global demand for chips outstrips supply, the withdrawal of supplies by US companies to China opens up space for manufacturers there to potentially fill the void.

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Olivia Lacen, Senior Analyst at Wonderinterest Trading Ltd.