US mulls new restrictions on AI chip exports to China

(Reuters) – The United States is considering new restrictions on artificial intelligence chip exports to China, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Shares of Nvidia and Advanced Micro Devices (AMD) fell around 1.4% on the news.

Nvidia, Micron and AMD are among the US chipmakers caught in the crossfire between China and the Biden administration.

In September, Nvidia said U.S. officials had asked the company to stop exporting two cutting-edge computer chips for artificial intelligence work to China.

The Commerce Department will stop shipments of chips made by Nvidia and other chip companies to customers in China as early as July, according to the report.

The Commerce Department did not immediately respond to a request for comment from Reuters.

The new restrictions the department is considering would ban even the sale of unlicensed A800 chips, the report adds.

(Reporting by Granth Vanaik and Akash Sriram in Bengaluru; Editing by Maju Samuel)

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