Advanced Micro Devices Inc (AMD) hit a US government roadblock in attempting to sell an artificial intelligence (AI) chip tailored for the Chinese market, people familiar with the matter said, part of Washington’s crackdown on the export of advanced technologies to the country.
AMD had hoped to gain a green light from the US Department of Commerce to sell the AI processor to Chinese customers, said the people, who asked not to be identified because the situation is private.
The chip has lower performance than what AMD sells outside of China and was designed to meet US export restrictions, they said.
Photo: Reuters
However, US officials told AMD that the chip was still too powerful and that the company must obtain a license from the department’s Bureau of Industry and Security to sell it, the people said.
AMD did not have an immediate comment, while the bureau declined to comment.
It was not yet clear whether AMD is applying for a license.
US President Joe Biden’s administration in 2022 unveiled an initial set of export controls and bolstered them in October last year to include more technology and curb sales to intermediary nations that might undermine the ban.
The tighter controls prevented Nvidia Corp and AMD from selling their most powerful AI chips to China, forcing them to find workarounds.
Nvidia immediately responded with a reduced-performance modified model, whereas AMD has not publicly discussed its efforts to develop a new AI processor for the country.
AMD had less of a foothold in the Chinese AI chip industry than Nvidia, which had a large share of that market prior to the ban.
However, AMD is now going after the AI chip market more aggressively after launching a new MI300 lineup in December last year that is to challenge processors from Nvidia.
The China-tailored product has been referred to as MI309, the people said.
It was not clear which Chinese customer was trying to buy the AMD AI chips. That factor could influence whether the company is able to secure a license, should the chipmaker move forward.
Leading Chinese tech firms, including Tencent Holdings Ltd (騰訊) and Baidu Inc (百度), have said they have stockpiled enough powerful chips from Nvidia — the types that are now subject to US controls — to advance their chatbots’ capabilities for another year or two.
Meanwhile, Huawei Technologies Co (華為) is developing its own AI semiconductors and chipmaking capability that could eventually help Chinese companies fill the gap created by the US ban.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday obtained the government’s approval to inject an additional US$7.5 billion into its US subsidiary, the Department of Investment Review said in a statement. The department approved TSMC’s application of investing in TSMC Arizona Corp, which is engaged in the manufacturing, sales, testing and design of IC and other semiconductor devices, it said. The latest capital injection follows a US$5 billion investment for TSMC Arizona approved in June. The chipmaker has broken ground on two advanced fabs in Arizona with aggregated investments approved by the department totaling US$24 billion thus far. According to TSMC, the first Arizona
The lethal hack of Hezbollah’s Asian-branded pagers and walkie-talkies has sparked an intense search for the devices’ path, revealing a murky market for older technologies where buyers might have few assurances about what they are getting. While supply chains and distribution channels for higher-margin and newer products are tightly managed, that is not the case for older electronics from Asia where counterfeiting, surplus inventories and complex contract manufacturing deals can sometimes make it impossible to identify the source of a product, analysts and consultants say. The response from the companies at the center of the booby-trapped gadgets that killed 37
FRIENDLY TAKEOVER: While Qualcomm Inc’s proposal to buy some or all of Intel raises the prospect of other competitors, Broadcom Inc is staying on the sidelines Qualcomm Inc has approached Intel Corp to discuss a potential acquisition of the struggling chipmaker, people with knowledge of the matter said, raising the prospect of one of the biggest-ever merger and acquisition deals. California-based Qualcomm proposed a friendly takeover for Intel in recent days, said the sources, who asked not to be identified discussing confidential information. The proposal is for all of the chipmaker, although Qualcomm has not ruled out buying some parts of Intel and selling off others. It is uncertain whether the initial approach would lead to an agreement and any deal is likely to come under close antitrust scrutiny
SECURITY CONCERNS: The proposed ban on Chinese autonomous vehicle software and hardware would go into effect with the 2027 and 2030 model years respectively The US Department of Commerce today is expected to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on US roads due to national security concerns, two sources said. US President Joe Biden’s administration has raised concerns about the collection of data by Chinese companies on US drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the Internet and navigation systems. The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, said the two sources, who declined to be identified because the