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The US is asking Nvidia and AMD to stop selling these chips to China.reasons for banning

The US government has issued new mandates to chip companies.I asked the chip giant NVIDIA Semiconductor manufacturer AMD Do not sell artificial intelligence (AI) chips to China due to national security concerns.the same is disclosed US Securities and Exchange Commission (SEC) Filing.
In its SEC filing, Nvidia said the Joe Biden administration had told the company “about new licensing requirements for future exports to China, including Hong Kong, to reduce the risk that its products would be used by the Chinese military.” said to have been notified.
Reasons to Ban AMD and Nvidia
A US official reportedly told Nvidia that the requirement was due to the potential risk of the product being used or repurposed by “military end users,” according to a CNN report. The company expects the move to bring his potential sales in China to $400 million this quarter. The new restrictions will prevent Nvidia from selling his A100 and upcoming H100 integrated circuits, and systems containing them, to China. An Nvidia spokesperson said, “We are working with our Chinese customers to meet planned or future purchases with alternative products and may seek a license if alternative products are not sufficient.
AMD told CNN Business it has also been given new requirements from the US Department of Commerce that will affect “shipments of MI250 integrated circuits to China.” “At this time, we do not believe our MI100 integrated circuit shipments will be affected by the new requirements, and we do not currently believe this will have a material impact on our business,” AMD said. The limit is also Russia However, both US-based companies do not ship products to Russia.
Analyst Ming Chi Kuo on what the ban means
Popular analyst Ming Chi Kuo tweeted about the US ban. Here’s what I think of the US government’s restrictions on Nvidia and AMD’s sale of his AI chips to China and Russia.
* China leads the world in AI patent filings (https://bit.ly/3B0gQro), and US restrictions on the sale of AI chips will ensure US leadership in the AI ​​field.
*While the impact of sales restrictions on suppliers such as TSMC is limited, investors are open to the possibility that the U.S. government will extend restrictions on more chips that could affect more server-related or other products. I am concerned that there is This uncertainty can pose structural risks to the semiconductor sector.
*It is noteworthy whether Chinese clients will rush orders directly or indirectly to increase their inventory to mitigate potential risks from possible increased sales restrictions by the US government. . If so, it may benefit supply chain utilization in the short term.

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