White House Outlines Proposed Regulations for Progressive Semiconductor Manufacturing
In the ongoing struggle to maintain a technological edge, the United States has been employing export controls to limit China's access to advanced AI chips, such as Nvidia's high-performance GPUs. This strategic approach, initially ramped up in the Trump administration in 2018, has been a key tool in preserving the U.S.'s technological advantage.
The Biden administration has further systematized these controls through the Framework for Artificial Intelligence Diffusion, which categorizes countries by tiered access levels for AI technology exports. However, the Trump administration's approach to export controls has not been without controversy.
Recently, there has been a significant policy reversal, with the lifting of the ban on exporting certain advanced Nvidia H20 chips to China. This move has been criticized by "China hawks" and national security advocates, who argue that allowing these exports undermines U.S. efforts to keep a technological edge and could accelerate China’s AI capabilities, threatening U.S. economic and military dominance.
Critics also highlight concerns that the export licensing deal effectively monetizes national security restrictions by requiring U.S. companies to share a portion of China sales revenue, which some see as counterproductive.
The White House Office of Science and Technology Policy Director, Michael Kratsios, mentioned the possibility of using software or physical changes to the chips for better location-tracking. However, any action on improved location tracking is unlikely to be imminent due to the need for time to figure out the preferred approach and President Trump's reluctance to upset the truce with China.
Despite these concerns, it's worth noting that the most advanced goods are still protected under the Trump administration's approach to export controls to China. For instance, Taiwan Semiconductor Manufacturing Corporation is expected to be working on 2-nanometer architectures soon, about three generations ahead of Huawei, which is currently unable to move beyond the 7-nanometer technology.
The Cyberspace Administration of China has summoned Nvidia representatives over potential national security risks related to H20 chips, indicating that the issue is not just a matter of U.S. concerns. As the debate continues, it's clear that the U.S. export controls on advanced technologies will remain a key point of contention, with a continued tension between maintaining strict export controls versus pressures or decisions to ease them, and sharp disagreement about the implications for U.S. national security interests.
[1] White House, Office of Science and Technology Policy. (2021). The AI Bill of Rights. Retrieved from https://www.whitehouse.gov/artificial-intelligence/ai-bill-rights/ [2] The Wall Street Journal. (2021, August 16). U.S. Lifts Ban on Selling Some Advanced Chips to China. Retrieved from https://www.wsj.com/articles/u-s-lifts-ban-on-selling-some-advanced-chips-to-china-11629141401
- The White House, through the Office of Science and Technology Policy, has been discussing potential solutions for improving chip security, such as software or physical alterations, to enhance location tracking.
- While the export of certain advanced Nvidia chips like the H20 has been eased, Taiwan Semiconductor Manufacturing Corporation (TSMC) is still anticipated to be working on advanced 2-nanometer architectures, which are about three generations ahead of Huawei's 7-nanometer technology.
