27 June (Reuters) – The United States is considering new restrictions on exports of artificial intelligence chips to China, The Wall Street Journal reported Tuesday, citing people familiar with the matter.
Shares of Nvidia (NVDA.O) fell more than 2% on the news, while Advanced Micro Devices (AMD.O) fell about 1.5% on the news in after-hours trading.
The Commerce Department plans to suspend shipments of chips made by Nvidia and other chip companies to Chinese customers as early as July, the report said.
Nvidia, Micron and AMD are among the US chip makers caught in the barrage between China and the Biden administration.
Nvidia announced in September that U.S. authorities had asked the company to stop exporting two of its top artificial intelligence-related computing chips to China.
A few months later, Nvidia, led by Jensen Huang, announced that it would offer a new advanced chip called the A800 in China to meet export control regulations. The company also tweaked its flagship chip H100 earlier this year to comply with regulations.
But new regulations under consideration by the ministry would prohibit the sale of even A800 chips without a special US export license, the report added.
The Commerce Department did not respond to Reuters’ request for comment.
Reported by Granth Vanaik and Akash Sriram of Bangalore.Editing: Maju Samuel and Shweta Aggarwal
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