The US chip manufacturer AMD is said to be encountering resistance from Washington when exporting an AI chip to China.
• AMD developed throttled chip for China
• US government apparently still hinders deal
• Tension between US and China in the tech sector is growing
AMD had developed a chip specifically for the Chinese market and reduced its performance compared to the regular variant in order to circumvent US export restrictions. Now the US government is apparently blocking the deal with the Chinese. According to informed sources, Washington fears that the chip could be used for military purposes, reports Bloomberg.
AMD’s China business in danger?
The blockage could severely affect AMD’s business in China. The Chinese market is an important growth driver for the group. It is unclear what will happen next in this case. AMD could try to convince the US government that the chip is harmless. It is also conceivable that the company could have the chip manufactured in another country in order to avoid US export restrictions, Bloomberg continued.
It was not until October 2023 that the US government imposed an export ban on highly developed AI processors to China. The measure was one of a series of restrictions intended to limit technology transfer between the USA and China in the field of artificial intelligence.
Tense tech relations between the USA and China
The blocking of AMD exports is another example of the growing tensions between the US and China in the technology sector. The US government is increasingly trying to restrict technology transfer to China in order to protect its own competitiveness.
The consequences of this policy are controversial. Proponents argue that the U.S. government must protect national security. Critics, however, warn that the blockade is hindering free trade and harming innovation.
It remains to be seen how the AMD case will impact US-China relations in the technology sector.
AMD shares temporarily lost 2.82 percent to $199.57 on the NASDAQ premarket on Tuesday.
Editorial team finanzen.net
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