The US government is set to impose new trade barriers on China’s access to advanced semiconductors, aiming to slow down the country’s efforts in building large and powerful AI models. The measures include sanctioning Chinese companies that produce semiconductor equipment, placing restrictions on chip manufacturing plants, and controlling the sale of high-bandwidth memory.
Background
The Biden administration is expected to announce new measures to further restrain China’s ability to develop advanced artificial intelligence (AI). The controls aim to slow down China’s efforts in building large and powerful AI models.
Expected Measures
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Sanctioning dozens of Chinese companies that produce equipment for making semiconductors.
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Placing restrictions on a handful of chip manufacturing plants, some of which have ties to the Chinese tech giant Huawei.
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Controls on the sale of high-bandwidth memory (HBM), an advanced kind of 3D-stacked computer memory component.
Impact
The new restrictions seem aimed at slowing China’s efforts to develop domestic chips capable of training very large and powerful AI models. The limits on HMB access will block access to HMB3, the latest and most advanced version of the technology, and impose some limits on access to the previous generation, known as HMB2.
Historical Context
Export restrictions aimed at curbing China’s AI sector began under the first Trump administration. In 2019, several up-and-coming Chinese AI firms were added to the entity list, meaning that US firms would be required to get a special license to do business with them. The Biden administration has ratcheted up the controls in October 2022, limiting exports to China of cutting-edge GPU chips.
Reaction from China
China is firmly opposed to the US overstretching the concept of national security and abusing export control measures. Mao Ning, a spokesperson for China’s foreign ministry, stated this at a press conference earlier this week in response to the anticipated controls.
Impact on Huawei
The new restrictions may hinder Huawei’s ability to develop competitive chips for training large AI models. Despite previous US sanctions, Huawei has sent samples of its latest AI training chip, called Ascend, to customers this September. Companies testing Ascend reportedly include ByteDance and Baidu.
History of Export Controls
Export restrictions aimed at curbing China’s AI sector began under the first Trump administration. In 2019, several up-and-coming Chinese AI firms were added to the entity list. The Biden administration has ratcheted up the controls in October 2022, limiting exports to China of cutting-edge GPU chips.
Impact on Chipmaking
It can be tricky to gauge the impact of US chip sanctions, and some experts question whether the controls are spurring China to make more rapid advances in chipmaking itself. In late 2023, Huawei unveiled a smartphone featuring an advanced chip from the Chinese chipmaker SMIC, suggesting that SMIC had made substantial progress in advancing its own manufacturing techniques.
