In the past period, America mandated that artificial intelligence chips sent to China must not exceed a certain power capacity, affecting all companies. As a result of this embargo, AMD, which had to produce low-quality chips specifically for China, now seems to have hit a wall.
The products designed by the company for export to China were deemed too good by American authorities. Currently, it’s uncertain which countries these second-rate chips, for which no sales license has been obtained yet, can be sold to. This situation could also be a red alert for other chip manufacturers in the country. Here are all the details…
AMD faces issues with the embargo!
China is seen as a significant market by American companies due to its massive population and burgeoning industry. Therefore, companies aim to comply with all embargoes while continuing to sell here. Considering the need for artificial intelligence chips for approximately 5 million data centers in China, there might indeed be a treasure trove here.
The company’s investors strongly support AMD’s expansion in this country. However, China’s aggressive artificial intelligence strategy currently seems to be the biggest obstacle in this regard. It is claimed that the government, which directly controls many companies on its territory, does not look favorably upon the import of low-quality chips.
Although AMD executives believe that the power of artificial intelligence chips has been adequately reduced, they have lodged an objection with the US Department of Commerce but have yet to achieve concrete results. The Department, which believes that these chips could pose a threat when they fall into the hands of countries deemed as threats like China and Russia, seems unwilling to compromise on the measures it has taken. It’s also known that the other major chip manufacturer Nvidia is making intense efforts to comply with the Department’s chip standards.
What do you think about this topic? Do you think America’s strategy is correct? What should AMD do? You can easily share your answers with us in the comments section below. Your opinions are very valuable to us.
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