U.S. Department of Commerce to impose Licensing Requirements for AI Chip Exports to China

On January 13, the U.S. Department of Commerce announced new regulations stating that applications to export artificial intelligence chips to China will be subject to a case-by-case review, with specific licensing requirements established for companies including NVIDIA and AMD. The key provisions include the following points:

1. Companies must demonstrate that producing chips for Chinese clients does not compromise the capacity originally available for manufacturing chips for U.S. domestic buyers, and ensure these chips are not used for military purposes.

2. The volume of chips exported to China will be capped at 50% of the total quantity produced for the U.S. market.

3. Companies exporting such AI chips must implement strict customer due diligence procedures to prevent unauthorized use of the technology. Additionally, these chips are required to undergo third-party performance testing within the United States.