Bloomberg reported on October 18 that the US government's objective of restricting China's access to advanced semiconductors with military applications will face challenges with export controls. Arm CEO Rene Haas expressed the difficulty of solving this issue solely by creating a list of critical components and implementing guidelines against them. Haas made these remarks on October 17 at the WSJ Tech Live conference in Laguna Beach, California. The Biden administration introduced new regulations on October 17 aiming to make it harder for China to acquire cutting-edge semiconductors and equipment. Arm is currently evaluating the approximately 450-page notice on these restrictions released by the US government.
The focus of these efforts largely centers on controlling the distribution of powerful graphics processor units (GPUs). Nvidia Corp., a leading GPU seller used in artificial intelligence systems, is now working on adapting to the stricter controls. However, GPUs are just one component of a broader range of elements found in computing systems, including central processing units (CPUs), memory, and power amplifiers, as highlighted by Haas. Considering the vast array of materials involved in circuit boards, Haas indicated that there might be different recommendations regarding threshold levels. According to the Bloomberg report, getting the approach right, especially when aiming to completely restrict access, poses a significant challenge.
Meanwhile, NVIDIA China claimed that the new restrictions on advanced AI chips to China by the US will not have a significant short-term impact on Nvidia. The company stated that it expects no meaningful impact on its financial results since it complies with all regulations and serves a global demand for its products. The export control rules will ban the export of advanced AI chips to China, including Nvidia's A800 and H800 chips, and will affect other chipmakers and equipment manufacturers as well. However, despite concerns, Nvidia's business has continued to grow, with a 422% increase in net profit and 171% increase in revenue in the last quarter.
