US Issues Warning To Nvidia, Urging To Stop Redesigning Chips For China

At the Reagan National Defense Forum in Simi Valley, California, on Saturday, US Commerce Secretary Gina Raimondo issued a cautionary statement to Nvidia, urging them to stop redesigning AI chips for China that maneuver around export restrictions. 'We cannot let China get these chips. Period,' she said. 'We're going to deny them our most cutting-edge technology.' Fortune reports: Raimondo said American companies will need to adapt to US national security priorities, including export controls that her department has placed on semiconductor exports. 'I know there are CEOs of chip companies in this audience who were a little cranky with me when I did that because you're losing revenue,' she said. 'Such is life. Protecting our national security matters more than short-term revenue.'

Raimondo called out Nvidia Corp., which designed chips specifically for the Chinese market after the US imposed its initial round of curbs in October 2022. 'If you redesign a chip around a particular cut line that enables them to do AI, I'm going to control it the very next day,' Raimondo said. Communication with China can help stabilize ties between the two countries, but 'on matters of national security, we've got to be eyes wide open about the threat,' she said. 'This is the biggest threat we've ever had and we need to meet the moment,' she said. Further reading: Nvidia CEO Says US Will Take Years To Achieve Chip Independence

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