BEIJING, October 17(TMTPost)— Shares of Nvidia Corporation slumped as much as 7.8%, the biggest intraday decline since December 2022, as the Biden administration strengthened chip exports to China. Shares of the U.S. artificial intelligence (AI) chip giant settled 4.7% lower at $439.38 that day, the lowest close October 3. Other semiconductor stocks also dropped, Advanced Micro Devices and Intel each fell more than 1%.

Credit：TMTPost

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) released a package of rules designed to update export controls on advanced computing semiconductors and semiconductor manufacturing equipment, as well as items that support supercomputing applications and end-uses, to China and other countries.

BIS said the new rules reinforce the controls launched in October 2022 to restrict China’s both purchase and manufacture certain high-end chips critical for military advantage. The agency believes the rules are necessary to maintain the effectiveness of these controls, close loopholes, and ensure they remain durable. The goal is to limit China’s “access to advanced semiconductors that could fuel breakthroughs in artificial intelligence and sophisticated computers,” said the U.S. Commerce Secretary Raimondo, adding that the chips are critical to Chinese military applications.

The U.S. Commerce Department’s move confirms the recent report about further curb on China. Reuters learned at weekend that the United States will update its restrictions on shipments of advanced chips and chipmaking equipment to China launched last October, targeting loopholes that enable China bypass export controls to acquire American products.

Beijing has warned against new restrictions of chip exports recently. China opposes US politicizing, instrumentalizing and weaponizing trade and tech issues, Chinese Foreign Ministry spokesperson Wang Wenbin commented last Friday. The U.S. needs to stop politicizing and weaponizing trade and tech issues and stop destabilizing global industrial and supply chains, Another spokesperson Mao Ning said  commented Monday. Mao reiterated Wang’s remark that China will closely follow the developments and firmly safeguard its rights and interests.

The new restrictions are by no means hitting American chip giants including Nvidia, the semiconductor designer that dominates the market for AI chips. Nvidia became a big winner amid the AI frenzy this year as its products empower AI systems including the large language model behind ChatGPT. The behemoth said in March it has modified some of flagship products including A100 and H100 for exports to China, including an alternative A800 chip, as the U.S. regulators last year banned it from selling its most advanced chips to China.

But even A800, the weakened version of Nivida’s cutting-edge A100 processor, could be banned from export without first obtaining a license according to the new restrictions, which will come into effect following a 30-day public comment period. Under the updated rules, any system that incorporates one or more of the covered integrated circuits, including but not limited to Nvidia’s DGX and HGX systems, is covered by the new licensing requirement. The licensing requirement includes future Nvidia’s integrated circuits, boards, or systems classified with ECCN 3A090 or 4A090, achieving certain total processing performance and/or performance density.

In a filling released Tuesday, Nvidia cautioned the licensing requirement may impact its “ability to complete development of products in a timely manner, support existing customers of covered products, or supply customers of covered products outside the impacted regions”, and may require it to transition certain operations out of one or more of the identified countries. Nevertheless, the Amercian chipmaker didn’t anticipate the additional restrictions will have a near-term meaningful impact on its financial results, given the strength of demand for its products worldwide.

本文内容来源：钛媒体英文站