Biden eyes adding AI chip curbs to Chinese companies abroad

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NEW YORK, Oct 13 — The Biden administration is considering closing a loophole that gives Chinese companies access to American artificial intelligence (AI) chips through units...

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Reuters reported in June that the very chips barred by US regulations could be purchased from vendors in the famed Huaqiangbei electronics area in the southern Chinese city of Shenzhen.Washington is now mulling ways to close the loophole, sources said, a move that has not been previously reported. While it would be illegal under US law to ship those AI chips to mainland China, it is very difficult for the United States to police those transactions, experts said, noting that China-based employees could legally access the chips located at foreign subsidiaries remotely as well.

China’s AI capability depends on its access to US chips. CSET found in a June 2022 report that out of 97 individual AI chips procured via Chinese military tenders over an 8-month period in 2020, nearly all of them were designed by US-based companies Nvidia, Xilinx, Intel, and Microsemi.

 

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