Advanced artificial intelligence (AI) chipmakers Nvidia Corp and Advanced Micro Devices Inc (AMD) have to ensure US companies get priority access to their products before China under legislation the US Senate has passed, a setback for the industry’s efforts to block the measure.
The bipartisan legislation was easily approved in a vote late on Thursday. It is designed to bolster US competitiveness in cutting-edge industries, and curb exports to China and other foreign adversaries, lead Republican cosponsor US Senator Jim Banks said.
US tech leaders and groups have criticized the bill, arguing it would instead restrict competition and weaken innovation.
Photo: EPA
“Today, the Senate acted to make sure American customers — including small businesses and start-ups — aren’t forced to wait in line behind China’s tech giants when purchasing the latest AI chips,” lead Democratic cosponsor US Senator Elizabeth Warren said.
Senators approved the measure as part of their annual defense policy bill after a month-long stalemate, but its path to becoming law remains unclear. The US House of Representatives passed its version last month without the export-controls language, and lawmakers in both chambers must now negotiate a final package that might not include the provision.
The US Senate action follows a deal this summer by the administration of US President Donald Trump with Nvidia and AMD to ease export restrictions to China. Opponents are expected to keep pressing the US Congress to drop the measure.
Nvidia last month said that the US is the company’s largest market and the legislation, although well-intentioned, addresses a nonexistent problem.
The measure is a “major win for US economic competitiveness and national security,” AI policy nonprofit Americans for Responsible Innovation president Brad Carson said in a statement.
In related news, Beijing has intensified enforcement of its import restrictions on US chips, including Nvidia’s AI processors, the Financial Times reported, as China sharpens its focus on promoting home-grown production.
Chinese customs officials were dispatched to key ports to conduct strict checks on semiconductor shipments, the newspaper reported.
The newspaper said the inspections initially targeted Nvidia’s H20 and RTX Pro 6000D, designed to adhere to US export controls.
The checks have been extended to include all advanced semiconductor products that breach US export controls, the report said.
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