US Issues Warning To Nvidia, Urging To Stop Redesigning Chips For China

On the Reagan Nationwide Protection Discussion board in Simi Valley, California, on Saturday, US Commerce Secretary Gina Raimondo issued a cautionary assertion to Nvidia, urging them to stop redesigning AI chips for China that maneuver round export restrictions. “We can not let China get these chips. Interval,” she mentioned. “We’ll deny them our most cutting-edge know-how.” Fortune experiences: Raimondo mentioned American firms might want to adapt to US nationwide safety priorities, together with export controls that her division has positioned on semiconductor exports. “I do know there are CEOs of chip firms on this viewers who had been just a little cranky with me after I did that since you’re dropping income,” she mentioned. “Such is life. Defending our nationwide safety issues greater than short-term income.”

Raimondo referred to as out Nvidia Corp., which designed chips particularly for the Chinese language market after the US imposed its preliminary spherical of curbs in October 2022. “For those who redesign a chip round a selected reduce line that permits them to do AI, I will management it the very subsequent day,” Raimondo mentioned. Communication with China might help stabilize ties between the 2 international locations, however “on issues of nationwide safety, we have to be eyes huge open concerning the menace,” she mentioned. “That is the most important menace we have ever had and we have to meet the second,” she mentioned. Additional studying: Nvidia CEO Says US Will Take Years To Achieve Chip Independence