American semiconductor giant Intel has informed its Chinese clients that it will now need a license to export certain high-performance artificial intelligence (AI) chips, in response to tightening U.S. trade restrictions. This move aligns with new regulatory thresholds targeting chips with significant processing and bandwidth capabilities, and marks another escalation in the ongoing tech tensions between Washington and Beijing.
According to a report by the Financial Times, Intel issued a notice last week stating that a license will be required for chips exceeding specific bandwidth limits. The rules apply to AI processors with a total DRAM bandwidth of 1,400 gigabytes (GB) per second or more, input-output (I/O) bandwidth of 1,100 GB per second or more, or a combined total of 1,700 GB per second or more. These restrictions effectively cover some of Intel’s most powerful chips, including those in its Gaudi series, which are tailored for deep learning and AI workloads.
This development follows closely on the heels of a warning from Nvidia, which said it could face a $5.5 billion revenue hit due to similar U.S. restrictions on its China-focused H20 AI chips, which also exceed the newly defined bandwidth thresholds. Meanwhile, Dutch semiconductor equipment supplier ASML also expressed concern over its future sales, citing the impact of tightening export regulations.
Intel, which recently appointed Lip-Bu Tan as its CEO, did not immediately comment on the licensing update when approached by Reuters. However, the company’s shares fell more than 3% on Wednesday, amid broader declines in chip stocks triggered by growing investor anxiety over the impact of geopolitical and regulatory pressures.
The Biden administration’s enforcement of these export controls reflects ongoing efforts to limit China’s access to cutting-edge semiconductor technology, citing national security and competitive concerns. Analysts warn that these policies could severely disrupt the global chip supply chain, impacting revenues for U.S. tech giants and accelerating efforts by China to ramp up its domestic semiconductor industry.
As the global semiconductor race intensifies, the new licensing requirement by Intel represents yet another twist in the complex and evolving dynamics between technology innovation, international trade, and strategic rivalry.
