Advanced Micro Devices hit a US government roadblock in attempting to sell an artificial intelligence chip tailored for the Chinese market, a reflection of Washington’s crackdown on the export of advanced technologies from the United States.
AMD had hoped to gain a green light from the Commerce Department to sell the AI processor to Chinese customers.
For the chip has lower performance than what AMD sells elsewhere than China and was designed to meet US export restrictions.
But US officials told AMD the chip was still too powerful and that the company must obtain a license from the Commerce’s Bureau of Industry and Security in order to sell it. And it remained unclear whether AMD was applying for a license.
AMD shares fell 3 percent in pre-market trading yesterday.
The US has been working to limit Chinese access to cutting-edge semiconductors that can develop AI models – and the tools used to manufacture those chips – out of fear Beijing will gain a military edge.
President Joe Biden’s administration unveiled an initial set of export controls in 2022 and strengthened them last October to include more technology and curb sales to intermediary nations that might undermine the ban.