Investing.com — Jefferies analysts famous a report from Reuters that stated President Biden might impose new restrictions on AI chip manufacturing for China earlier than his time period ends on January 20.
The restrictions are anticipated to have two fundamental parts: barring sure nations aiding China in AI improvement from accessing AI chips and stopping foundries like TSMC and Samsung (KS:) from manufacturing AI chips for Chinese language companies.
Jefferies emphasised the excessive probability of those restrictions concentrating on TSMC and Samsung, noting that “Stopping TSMC and Samsung from making AI chips for China has excessive certainty of occurring.”
The analysts highlighted that TSMC has already suspended manufacturing of 7nm chips for its Chinese language shoppers pending additional regulatory particulars.
The anticipated restrictions would contain an in depth definition of “superior AI chips” primarily based on components like course of node, die dimension, and using CoWos and HBM specs.
Jefferies factors out that these measures goal to tighten current loopholes and guarantee compliance.
The restrictions are significantly anticipated to affect Chinese language firms designing GPUs, ASICs, and ADAS chips, corresponding to Alibaba (NYSE:), Baidu (NASDAQ:), and Horizon Robotics.
Jefferies notes that this coverage may face enforcement challenges, particularly in regards to the involvement of third-party nations.
They argue, “It should threat damaging US relationships with these nations, and a few of them are ‘delicate’ pals of the US.”
Furthermore, the agency says the coverage may pressure worldwide relations as it could be perceived as coercive.
Regardless of potential difficulties, Jefferies believes Biden’s administration is dedicated to tightening AI chip manufacturing laws, that are unlikely to be reversed by a possible Trump administration.
