(Finance) – USA and China remain at loggerheads on the question of Taiwan’s independence and commercial, military and technological supremacy. The latest act in a story that has long plagued the technology sector involves chip makers Nvidia And Advanced Micro Devices (AMD)who were intimated with the blocking the sales of high-performance chips to China.
US officials said ordered Nvidia to stop exporting two of its chipsthe A100 and H100, designed to accelerate machine learning activities. Even rival AMD she was banned from exporting her own artificial intelligence chip MI250 in China, but the company believes its MI100 chips will not be affected.
The ban was formally imposed by the US authorities for avoid the risk that this kind of products can be used for “military end use” or are intended for a “military end user in China”. The future of Taiwan, where these chips are produced, is also at the center of the question.
The export ban on these high-performance chips it could harm China inhibiting Chinese companies the opportunity to carry out the type of advanced processing used for the image recognition and speech and other activities. For US companies, the damage is mainly economic: Nvidia has sales of 400 million dollars in the last quarter in China.
Nvidia stock peaks 11.5% on the Nasdaq at $ 133.56, while rival AMD drops nearly 7% at $ 78.94.