The US treasury department finalized a rule on Monday that limits domestic entities' investment in Chinese semiconductors and microelectronics, quantum information technologies, and AI.
They are now set to go into effect on January 2 and are inclusive of Macau and Hong Kong, as well as mainland China. When it comes to semiconductors and microelectronics, transactions involving specific electronic design automation software, certain fabrication and advanced packaging tools, the design or fabrication of advanced integrated circuits, advanced packaging techniques, and supercomputers are prohibited. Those related to the design, fabrication, or packaging of integrated circuits not covered by these prohibitions must be reported to the government.
For AI, its end use is what will get it banned. Also on the prohibited transaction list is the development of any AI system trained using computing power greater than 10computational operations needs to be disclosed to the government, as are those"designed or intended to be used for certain end uses or applications."
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