New Delhi:
America has announced new rules regarding the export of advanced computing chips i.e. AI chips used for Artificial Intelligence (AI). Its purpose is to give concession in export of AI chips to allied countries and to control its access to countries like China and Russia. A week before the end of his term, this move by President Joe Biden and his administration is being seen as a major attempt to allay national security concerns about technology. According to this decision of the US government, no ban will be imposed on the export of any chip on 20 major American allies and partners including South Korea. On the other hand, for countries like Russia and China, new rules have set limits on their computational power. China has been stunned by this step of America.

According to the report of news agency Reuters, US Commerce Secretary Gina Raimondo said, “America is currently leading the world in AI. This policy will help in creating a reliable technology ecosystem around the world. “This will allow us to protect against national security risks while ensuring that American technology leadership is not hindered.”

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Countries and institutions with UVEU status will also benefit from America’s new rules. But, the new rules restrict the export of chips known as graphics processing units (GPUs). These are basically specialized processors designed to speed up graphics rendering.

US National Security Advisor Jake Sullivan said, “The purpose of the new sanctions is to ensure that advanced semiconductors sold abroad are not able to be used by China, Russia and such countries. We are trying to reduce serious fraud originating from such countries. “And seek to prevent related national security risks.”

According to AI expert Divyansh Kaushik of Washington-based advisory firm Beacon Global Strategies, this limit is equivalent to about 50,000 H100 Nvidia GPUs. Kaushik explains, “50,000 H100 Nvidia GPUs is a huge power. This is enough to promote research and run entire AI applications. “This includes running global scale chatbot services or managing advanced real-time systems like fraud detection or personalized recommendations for large companies like Amazon or Netflix.”

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Which countries got concession?
Australia, Italy, Belgium, Britain, Canada, Denmark, Finland, France, Germany, Ireland, Japan, Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan are exempted from America’s new restrictions.

What’s the problem with China?
America feels that if China gets AI chip, it will make the Dragon Army more powerful. China will also become strong in the technology sector. This is the reason why a new rule has been brought by America regarding this.

Why so much competition for the chip?
The semiconductor chip market is expanding rapidly. It is also called modern gold. Anything that runs on an electronic circuit requires a semiconductor chip. This includes home appliances like fridge, TV, oven, toaster, washing machine, smartphones, vehicles, space satellites, missiles and many types of manufacturing machines.

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Today there is emphasis on automation in every industry. For which semiconductor chips are required. The country that controls the chip market will also control every kind of manufacturing, from consumer goods to defence, space and so on. That’s why there is competition among countries regarding chips.

In the era of Artificial Intelligence, every country in the world wants to control the market of electronic semiconductor chips. Understanding this strength, the government in India has also started new schemes to establish semiconductors industry.

Why was China embarrassed by America’s decision?
Actually, China has given cheap electronic devices to the whole world. China wants to establish its dominance in the electronic market. That’s why it needs semiconductor chips. Manufacturing of chips has always been done on a large scale in Taiwan, Japan and Europe. Every year, China imports many times more semiconductors than it imports raw materials. Many years ago, Xi Jinping had talked about making China self-reliant in chip manufacturing. Work on that was also started rapidly.

China has also started manufacturing of chips. Till now Dragon can only make chips larger than 28 NM. For small chips it is dependent on imports. Now, due to the new rules of America, it will have to face more litigation i.e. legal procedures than before in importing chips from European countries including Taiwan and Japan.

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When did China defeat America in the chip war?
-In 2016, America defeated China for the first time in the chip war. Then China was about to buy German company Extron. Some assets of this company were also in America. America’s Defense Department used to buy chips from this company. Then the then President Barack Obama banned this deal of the Sino-German company through an ordinance.

-Then this year America made a new rule regarding chips. The government made a rule that any American citizen, green card holder or company will take permission from the US government before providing help to a Chinese semiconductor company or making any deal.

-Then on August 9, 2022, the Joe Biden government passed the United States Chips and Science Act and tried to curb China’s flights to some extent.

-In January 2023, America, Japan and Netherlands made a deal regarding chips. Under this, there was an agreement between these countries that these countries will not sell chip making technology, machines and services to China.

-ASML has emerged as America’s biggest weapon to defeat China in the chip war. This company manufactures lithography machines. That means printing the chip. But, after the agreement reached in America, Japan and Netherlands, ASML will no longer be able to sell lithography machines to Chinese chip manufacturing companies.

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