The U.S. Department of Commerce closed a loophole that allowed advanced AI chips from companies like Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ:AMD) to be exported to Chinese firms operating outside of China.
What Does The Guidance Say?
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The Commerce Department’s new guidance, published on its website, indicates that subsidiaries of Chinese AI firms in countries such as Malaysia have been receiving these advanced chips for almost a year.
This development comes despite ongoing U.S. measures to limit China’s access to semiconductors vital for AI advancements. The department now intends to impose license requirements for advanced chips on entities headquartered in China, regardless of their location.
