"Trade restrictions on advanced AI chips are reshaping the entire semiconductor industry in unprecedented ways. Where previously the design and performance of AI accelerators were primarily driven by physics, manufacturing yields, and customer demands, they are now controlled by US export restrictions. The US's Department of Commerce has set strict limits on how leading American technology companies, such as Nvidia and AMD, design AI chips, with restrictions on performance, memory bandwidth, and interconnect speeds."
"Design under constraint During the Cold War era, the United States attempted every means to prevent the Soviet Union from acquiring advanced Western technology. But when the United States opened its technology to the world, the entire global technology ecosystem benefited from this. However, under his previous administration from 2017 to 2021, Donald Trump had already begun to repurpose Cold War tactics."
US export restrictions on advanced AI chips now determine chip design parameters such as performance, memory bandwidth, and interconnect speeds. Leading American firms are producing specialized, downgraded variants to comply with export limits and maintain global sales. Engineering priorities are shifting from pushing capabilities to intentionally capping products, which reduces innovation and turns engineering into compliance. China-specific chips sacrifice capability to remain below export thresholds, and government policy is directly altering chip schematics. The resurgence of Cold War-style export controls is reshaping manufacturing decisions, supply chains, and the technical and geopolitical landscape of the semiconductor market.
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