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Overview

(Bloomberg) — The US is considering unilateral restrictions on China’s access to AI memory chips and equipment capable of making those semiconductors as soon as next month, a move that would further escalate the tech rivalry between the world’s biggest economies.

What are the proposed restrictions?

The measure aims to prevent Micron Technology Inc. and South Korea’s leading memory chipmakers SK Hynix Inc. and Samsung Electronics Co. from supplying Chinese firms with high-bandwidth memory (HBM) chips. This is part of a broader strategy by the Biden administration to keep vital technology out of the hands of Chinese manufacturers.

What types of chips are affected?

If enacted, the restrictions would include HBM2 and more advanced chips such as HBM3 and HBM3E, which are crucial for running AI accelerators like those from Nvidia Corp. and Advanced Micro Devices Inc.

Impact on Micron and South Korean firms

Micron is likely to remain largely unaffected as it has already refrained from selling its HBM products to China. However, it remains unclear what authority the US would use to restrict South Korean firms, given their reliance on US technology.

What is the response from the US government?

The Commerce Department stated that it is continually assessing the evolving threat environment and updating export controls to protect US national security. The new restrictions are expected to be unveiled as soon as late August.

Conclusion

As the US moves forward with these potential restrictions, it raises questions about the future of technology collaboration and competition between the US and China. How will these changes affect the global semiconductor market?

For more details, visit the original article on Yahoo Finance.