US Considers New Export Restrictions on Latest Generations of AI Chips to China

The United States is considering new restrictions on the export of artificial intelligence chips to China.

Shares of Nvidia (NVDA.O) fell more than 2% and Advanced Micro Devices (AMD) (AMD.O) fell about 1.5% on the news in extended trading.

The report says the Commerce Department will stop deliveries of chips made by Nvidia and other chipmakers to customers in China as early as July.

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

Nvidia said in September  that  U.S. officials had asked the company to stop exporting two of its best AI computing chips to China.

A few months later, Jensen Huang, led by Nvidia, announced that it would offer a new and improved chip called the A800 in China to comply with export control regulations. Earlier this year, the company also tweaked its flagship H100 chip to meet regulatory requirements.

But new restrictions being drafted by the ministry prohibit even A800 chips from being sold without a special US export license, the report said.