{"id":2071582,"date":"2023-10-18T11:46:01","date_gmt":"2023-10-18T15:46:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-throws-nvidia-a-lifeline-while-choking-off-chinas-chipmaking-future\/"},"modified":"2023-10-18T11:48:06","modified_gmt":"2023-10-18T15:48:06","slug":"us-throws-nvidia-a-lifeline-while-choking-off-chinas-chipmaking-future","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-throws-nvidia-a-lifeline-while-choking-off-chinas-chipmaking-future\/","title":{"rendered":"US saves Nvidia, stifles China&#8217;s chipmaking future."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-throws-nvidia-a-lifeline-while-choking-off-chinas-chipmaking-future%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2071582&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><span class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2\" data-testid=\"Text\">By <\/span>Stephen\u200c Nellis<span class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2\" data-testid=\"Text\"> and <\/span>Max A. Cherney<\/p>\n<p>October 18, 2023 \u2013\u200d 7:09 AM UTC<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p><strong>SAN FRANCISCO \u2063(Reuters) \u2013<\/strong> The\u2062 Biden\u200d administration&#8217;s new\u200c rules, \u200baimed\u2063 at restricting \u2064China&#8217;s access to \u200bU.S. artificial intelligence chips, have also provided a potential lifeline for Nvidia, Intel,\u2064 and\u200b AMD\u2062 to maintain \u200btheir lucrative business in the Chinese chip market.<\/p>\n<p>Buried within the extensive rules issued by the U.S. Bureau of \u200bIndustry\u200c and Security (BIS), officials have expressed openness to\u200b input from the semiconductor industry on how\u200c to \u2064continue \u2064supplying\u200c AI chips to China for small and \u200cmedium-sized\u2062 systems.<\/p>\n<p>The primary \u2064objective\u200b of \u2063these \u200brules is to\u2063 prevent China from\u2064 utilizing American chips to develop supercomputers with military applications, similar to\u2063 OpenAI&#8217;s ChatGPT technology.<\/p>\n<p>Thomas Krueger, a former U.S. National Security Council export control official, explained that the rules are specifically focused on\u2063 capabilities that could\u2062 enhance \u2062Chinese military systems, rather than targeting broad consumer applications.<\/p>\n<p>The BIS has requested suggestions for \u200dcreating a\u200d &#8220;tamperproof&#8221; method to\u2063 prevent\u2063 the combination\u2062 of up to 256 AI\u200d chips into a \u200dsupercomputer.<\/p>\n<p>&#8220;This approach could \u200climit\u2063 the use of controlled\u2064 AI chips for training large dual-use AI models with concerning capabilities, \u2063while still allowing AI training at a smaller scale,&#8221; \u200dstated \u200cthe BIS.<\/p>\n<p>Nvidia, Intel, and AMD \u2063declined to comment on the\u200b new rules, \u2063but Nvidia&#8217;s shares experienced a 4.67% decline following the announcement.<\/p>\n<p>Furthermore, the rules\u2062 also hinder the progress of Nvidia veterans&#8217; Chinese competitors, \u200cMoore Threads and Biren, making it \u2064nearly impossible for them to manufacture cutting-edge chips.<\/p>\n<p>As \u200da result, whatever\u200d Nvidia is able \u2062to sell to China will \u2064likely\u200d be the \u2064best\u2062 legal option for \u2063Chinese \u2062buyers.<\/p>\n<p>Regarding the\u200d new rules, analysts at investment bank Piper Sandler expressed the \u200dbelief that Nvidia will quickly adapt and redesign a \u2064chip\u200c to meet the new standards with minimal disruptions to their current business outlook.<\/p>\n<h4 class=\"wp-block-heading\">TOOL RULES TIGHTENED<\/h4>\n<p>Among the new rules, which will take effect\u2063 in 30\u200b days, U.S. officials \u2064have specifically \u2062targeted China&#8217;s chip manufacturers by restricting the export of advanced chipmaking equipment known\u2062 as immersion \u2064deep ultraviolet (DUV)\u200d lithography machines if \u2063they contain any American\u200c parts.<\/p>\n<p>TechInsights analyst Dan\u2064 Hutcheson explained that these\u2063 rules effectively close \u2062off\u200b a \u200dsignificant portion of potential \u2064future developments, aiming\u200b to &#8220;future-proof the \u200bdocument.&#8221;<\/p>\n<p>Although the DUV machines are not produced\u200b by American toolmakers, they\u200d are manufactured \u2062by Japan&#8217;s Nikon and the\u200c Netherlands&#8217; ASML.<\/p>\n<p>The DUV rules\u2062 announced\u2062 on Tuesday formalize the collaboration between the U.S., Japan, and the Netherlands to impose\u200b similar controls on exporting \u2062these machines to China, according to trade and policy \u200battorney Clete Willems.<\/p>\n<p>While immersion DUV machines may not produce cutting-edge\u200c chips,\u2064 they\u200c come close and are likely used by Huawei&#8217;s chip manufacturing \u2064partners\u200b to create new \u2063smartphone\u2062 chips, as per \u2063analysts.<\/p>\n<p>Gregory \u200dAllen, a\u2064 director at the Center for Strategic and International Studies, \u200bbelieves that this control alone will significantly limit China&#8217;s \u2062ability to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-throws-nvidia-a-lifeline-while-choking-off-chinas-chipmaking-future\/\" title=\"US saves Nvidia, stifles China's chipmaking future.\">expand advanced\u200d node semiconductor manufacturing<\/a> for many years.<\/p>\n<p>By narrowing \u2062the\u2062 scope of\u2063 blocked equipment,\u200b the\u200b rules allow toolmakers to sell equipment designed for building older chips without\u200d violating government restrictions.<\/p>\n<p>Reporting by Stephen\u200b Nellis \u2064and Max A. Cherney in San Francisco; Editing by Kenneth Li and Jamie Freed<\/p>\n<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-4\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-4'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The\u2062 IDF reports Islamic Jihad is responsible\u2064 the death of hundreds after a\u2062 Hamas\u200c Rocket\u200d misfired into a hospital.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The House\u200b Oversight Committee is \u200dquestioning the timeline that President Joe Biden\u2019s attorneys\u200d have laid out regarding the discovery \u2062of his classified materials \u200bat \u2062the\u200d Penn Biden Center.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Justice Amy Coney Barrett says she supports the Supreme Court \u200dadopting an ethics code after she\u2019s interrupted\u200b by protesters at\u200c the University Of Minnesota.\u200c <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>As\u2062 Israel continues to battle Hamas, a recent attack on a \u2064hospital\u200b in Gaza was initially blamed on Israel. IDF \u2063says it was a failed \u2062rocket by Hamas and there\u2062 are videos online showing\u200d it. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>While \u2062stripping \u200bChina\u2019s access \u2064to key\u2062 U.S.\u200c artificial intelligence chips,\u200c the\u2063 Biden \u2064administration\u2019s\u200d sweeping new rules also quietly threw \u2062Nvidia, Intel and\u200b AMD \u2063a potential lifeline.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Stanford researchers issued a report measuring the transparency of artificial intelligence foundation models from companies \u2064like OpenAI and Google.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>LinkedIn \u2062said on Monday it \u2064would \u200dlay off 668 employees across its engineering, talent and finance \u2062teams in\u2063 the second round of job cuts this year.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Netflix\u2019s\u2062 crackdown \u200con password-sharing likely boosted \u200csubscribers by about\u2063 6 million is expected to set\u200c the stage for price increases.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> \u200dHow do the tightened tool rules imposed by the US impact China&#8217;s chip manufacturers, and what potential\u2062 collaboration opportunities\u200b are there with global \u2064allies<\/h2>\n<p><span>  Title: \u200dNew US Rules on AI Chips Offer \u200cOpportunity\u200c for Nvidia, Intel, \u2063and AMD to Maintain Presence in Chinese Market<\/p>\n<p>Introduction:<\/p>\n<p>The Biden administration&#8217;s recently introduced\u200b regulations, aimed at curbing China&#8217;s access to \u200dU.S. artificial intelligence (AI) chips, have inadvertently opened a potential lifeline for major\u2064 chip\u200b manufacturers like Nvidia, Intel, and AMD to sustain their\u200b lucrative \u2062businesses in the Chinese \u2062chip market. While the\u2064 primary aim of these rules is to prevent China from utilizing American \u200dchips in the development \u200cof \u200dmilitary-grade supercomputers, they also provide a window for dialogue between\u2063 the semiconductor industry\u200c and the U.S. Bureau of Industry and Security (BIS) to explore ways to continue supplying AI chips \u2063to China for smaller systems. This article delves into the details and implications of\u200d these new regulations.<\/p>\n<p>Background:<\/p>\n<p>The set of regulations\u200d issued by the BIS has prompted industry players to provide input on how to navigate the challenges of supplying \u2062AI chips to\u2062 China without compromising \u2062national security\u200b interests. The rules aim to\u2062 prevent the utilization of American chips for the \u2064development of \u2064Chinese military systems, particularly those with capabilities \u200csimilar to OpenAI&#8217;s ChatGPT technology. According to Thomas Krueger, a former\u200d U.S. National \u2064Security Council export control official, the \u200dregulations are focused \u2064on capabilities that\u200d could potentially enhance Chinese military systems, rather than targeting \u200dbroad consumer applications.<\/p>\n<p>Tamperproof Method and Restricted AI Chip Usage:<\/p>\n<p>The BIS\u2063 has specifically requested suggestions for developing a &#8220;tamperproof&#8221; approach that prevents \u200bthe combination of up to 256\u200b AI chips into a\u200d supercomputer. This approach aims to limit the use of controlled AI\u2062 chips for training large\u200d dual-use AI models with concerning\u2062 capabilities while still allowing AI\u200c training at\u2064 a smaller scale. Nvidia, Intel, and AMD \u200chave refrained from commenting on the new \u200brules, although \u2064Nvidia saw a decline of 4.67% in its \u200bshare value\u2064 following the announcement.<\/p>\n<p>Impact on Competitors\u2062 and Opportunities for Nvidia:<\/p>\n<p>In addition to affecting major \u200dchip \u200dmanufacturers, the rules also impede the progress of Nvidia&#8217;s Chinese competitors, Moore Threads and Biren, \u200bmaking it nearly impossible for them to manufacture cutting-edge chips. Consequently,\u2062 Nvidia is poised to\u2062 become \u2062the best legal option for Chinese buyers. Analysts from investment bank\u2062 Piper Sandler believe that Nvidia will quickly adapt \u200cand redesign chips\u200b to meet the new standards, minimizing \u2062disruptions to their current business outlook.<\/p>\n<p>Tightened Tool \u200cRules and Collaboration with\u200c Global Allies:<\/p>\n<p>Among the new rules, \u200cU.S. officials have targeted China&#8217;s chip manufacturers by \u2062imposing restrictions \u200bon the export of \u2064advanced chipmaking equipment known as \u2063immersion deep\u2063 ultraviolet (DUV) \u200clithography machines if \u200cthey contain any American \u200bparts. While \u2064these machines are not manufactured\u200c by American toolmakers, they are \u200cproduced by<\/p>\n","protected":false},"excerpt":{"rendered":"<p>the world&#8217;s largest markets. The new rules restrict the export of certain AI chips to China, benefiting Nvidia, Intel, and AMD by protecting their profitable business opportunities in the country.<\/p>\n","protected":false},"author":1911,"featured_media":2071583,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2071582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2071582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2071582"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2071582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2071583"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2071582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2071582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2071582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}