Tensions between the USA and China in the technology sector continue to rise. Now, the US chip manufacturer AMD is facing resistance from Washington. The reason: The export of an AI chip developed specifically for the Chinese market is being blocked by the US government, Bloomberg reports.
Originally, AMD had throttled its regular variant of the AI chip to circumvent US export restrictions. Nevertheless, Washington apparently fears military use of the chip by China, as informed circles report. This decision could have serious effects on AMD's business in China, as this market is an important driver of growth for the company.
Unclear is how AMD will now proceed. One possibility would be to convince the US government that the chip is harmless. Another option would be to have the chip manufactured in another country in order to circumvent US export restrictions, according to Bloomberg.
This case is not the first example of the growing tensions between the USA and China in the technology sector. Already in October 2023, the US government imposed an export ban on advanced AI processors to China. This measure is part of a series of restrictions aimed at limiting technology transfer between the two countries.
The U.S. Government Justifies This Policy on the Grounds That It Must Protect National Security. Critics, However, Warn That This Blockade Hampers Free Trade and Impedes Innovation. The Effects of This Policy Are Controversial.
It remains to be seen how the AMD case will impact the relations between the USA and China in the technology sector. At NASDAQ, the AMD stock ultimately lost 0.11 percent on Tuesday, closing at 205.13 US dollars. It remains to be seen how the situation will unfold and whether the block of AMD exports will affect the relations between the two countries.
