The United States government is considering additional measures to curb Chinese developers from gaining access to artificial intelligence (AI) semiconductor chips made in the U.S. via third parties.
According to a report from Reuters on Oct. 13, people close to the matter have said that the Biden administration is targeting a loophole that has allowed developers in China to purchase chips from the infamous Huaqiangbei electronics area in Shenzhen, a city in southern China.
The sources reportedly claim that the additional rules on AI chips will come out this month and will apply restrictions previously applied only to the U.S.’s top players like Nvidia and AMD but more broadly to all companies producing similar materials in the market.
Over the summer, the U.S. government applied additional rules to its largest chip makers, including Nvidia, which currently leads the market in chip manufacturing. It asked the companies to curb exports of their high-level semiconductor chips to “some” Middle Eastern countries, among other small details.
However, U.S. regulators have since denied explicitly blocking AI chip exports to the Middle East.