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AI Memory Chips

Introduction

The US is contemplating unilateral restrictions on China’s access to AI memory chips and the equipment necessary for their production, potentially escalating the ongoing tech rivalry between the two largest economies.

What Are the Proposed Restrictions?

According to sources, the measure aims to prevent Micron Technology Inc. and South Korea’s major memory chip manufacturers, SK Hynix Inc. and Samsung Electronics Co., from supplying Chinese firms with high-bandwidth memory (HBM) chips. However, a final decision has yet to be made.

Why Are These Restrictions Important?

The Biden administration is focused on keeping crucial technology away from Chinese manufacturers, particularly in the realm of artificial intelligence. The proposed restrictions would target advanced chips such as HBM2, HBM3, and HBM3E, which are essential for AI accelerators like those produced by Nvidia Corp. and Advanced Micro Devices Inc.

Impact on Micron Technology

Micron is likely to be less affected by these restrictions, as it has already ceased selling HBM products to China following a ban on its memory chips from critical infrastructure in 2023.

How Will These Restrictions Be Enforced?

It’s uncertain what authority the US would employ to impose restrictions on South Korean companies. One possibility is the foreign direct product rule (FDPR), which allows the US to control foreign-made products that incorporate even minimal amounts of American technology.

Statements from Officials

The Commerce Department stated it is continually assessing the evolving threat environment and updating export controls to safeguard US national security and technological integrity.

Conclusion

The new restrictions are expected to be announced by late August as part of a broader strategy that includes sanctions against over 120 Chinese firms and additional limits on chip equipment. This could significantly impact US companies and their operations in the global market.

For more information, you can read the full article on Yahoo Finance.