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Che Pan

The US government may unveil new restrictions targeting China’s black-market trade in advanced chips during the last week that President Joe Biden is in the White House, according to sources familiar with the matter.
The South China Morning Post reported earlier that Washington plans to issue a new rule by the end of December 2024 aimed at curbing Chinese companies’ sourcing of advanced artificial intelligence (AI) chips from unrestricted third-party countries. But sources briefed on the matter said the Biden administration had decided to postpone the release of the so-called “global artificial intelligence (AI) diffusion rule” due to delays in expert reviews as a result of US government “budgetary issues”.
However, President Biden is still expected to implement the rule before January 20, his last day in office, the sources said.
The changes aim to control global shipments of powerful graphics processing units (GPUs) essential for training AI models by closing existing regulatory loopholes.
The development follows the recent US Section 301 trade investigations into China’s production of so-called legacy chips, and the blacklisting of 140 Chinese chip firms, including major semiconductor equipment makers.

Under the Biden administration, the US has implemented three major export control rules to slow China’s progress in advanced semiconductor production and restrict access to sophisticated chips and manufacturing equipment amid concerns US core tech will be used to modernise the Chinese military.
The AI diffusion rule remains “in development”, according to one source. While some provisions have been modified, the fundamental approach remains unchanged, the person added. The new measure is expected to include several provisions to prevent Chinese firms from accessing restricted hardware such as GPUs through intermediary countries, which remains a significant means of circumventing US export controls, the Post reported previously.
The measures include establishing a country cap and a “black and white” list to limit GPU shipments to specific locations, along with implementation of a worldwide licensing system that includes reporting requirements and exceptions.

To prevent circumvention through Chinese shell companies, the US may also establish new restrictions in the upcoming rule. These would prevent global chip foundries from using US technology to fabricate Chinese AI chip designs on 7-nanometer or more advanced nodes, or chips exceeding certain size dimensions, according to one of the sources.
Silicon used to train AI models is significantly larger than system-on-a-chip (SoC) processors found in smartphones and tablets, making them more challenging to manufacture, according to a Taiwan chip engineer who wished to stay anonymous.
For example, Nvidia’s A100, which contains 54.2 billion transistors, has a die size of 826 square millimetres (mm²). The Huawei 910B, believed to be comparable to the A100, measures 665.61 mm². Both chips are substantially larger than advanced mobile processors like Apple’s new A18 Pro SoC.


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Semiconductors

Chip war: US may unveil new rules limiting China access to AI chips before Biden goes

Under the Biden administration, the US has implemented three major export control rules to restrict China’s ability to use US core tech to modernise its military. Photo: Shutterstock Images

This photo taken on December 25, 2024 shows an employee at a semiconductor factory in Binzhou, in eastern China’s Shandong province. Photo: AFP

US President Joe Biden speaks at an event in Philadelphia, Pennsylvania, on March 9, 2023. Photo: AFP via Getty Images/TNS

With China in sights, US plans curb on countries’ advanced semiconductor access: sources

As the US has sought to curb China’s access to advanced semiconductors, the smuggling trade for these chips has grown. Photo: Shutterstock

US Secretary of Commerce Gina Raimondo speaks at the convening of the International Network of AI Safety Institutes in San Francisco on November 20. Photo: AP

Jensen Huang, co-founder and CEO of US semiconductor giant Nvidia, delivers a speech at an event on artificial intelligence in Tokyo on November 13. Photo: Kyodo

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Will US chip curbs derail China’s AI ambitions? Illustration: Davies Christian Surya

An AI robot at a consumer product expo in Haikou, capital of southern Hainan province. Photo: Xinhua

An exhibit at the World Artificial Intelligence Conference in Shanghai. Photo: AFP

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The changes aim to control global shipments of powerful GPUs essential for training AI models by closing existing regulatory loopholes


The changes aim to control global shipments of powerful GPUs essential for training AI models by closing existing regulatory loopholes.


.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The changes aim to control global shipments of powerful GPUs essential for training AI models by closing existing regulatory loopholes

The changes aim to control global shipments of powerful GPUs essential for training AI models by closing existing regulatory loopholes