DMR News

Advancing Digital Conversations

Potential U.S. Restrictions on AI Memory Chips Could Impact China’s Tech Sector

ByYasmeeta Oon

Aug 1, 2024

Potential U.S. Restrictions on AI Memory Chips Could Impact China’s Tech Sector

The United States is contemplating new unilateral restrictions on China’s access to advanced AI memory chips, specifically targeting products from companies like Micron Technology, SK Hynix, and Samsung, according to a report by Bloomberg News. The potential measures, expected to be implemented as early as next month, aim to limit the supply of high bandwidth memory (HBM) chips, which are crucial for running complex generative artificial intelligence programs.

These restrictions would impact chips such as HBM2, HBM3, and HBM3E, along with the necessary equipment for their production. The U.S. Department of Commerce has declined to comment on the matter, and the companies involved have not responded to requests for comment. The proposed regulations have not yet been finalized.

Micron Technology, which already refrains from exporting its HBM products to China following a 2023 ban by Beijing on its memory chips for critical infrastructure, is expected to remain largely unaffected by the potential new rule. However, the mechanism for restricting South Korean firms like SK Hynix and Samsung remains unclear. The U.S. might invoke the foreign direct product rule (FDPR), allowing the regulation of foreign-made products that incorporate American technology.

SK Hynix and Samsung rely heavily on technology from American companies such as Applied Materials and Cadence Design Systems. The new restrictions would prevent direct sales of HBM chips to Chinese firms, but it’s uncertain whether high-end memory chips bundled with AI accelerators would be included in the ban.


Featured Image courtesy of The Washington Post

Follow us for more updates on AI Memory Chips.

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

Leave a Reply

Your email address will not be published. Required fields are marked *