Two of America’s top chipmakers have been ordered to stop selling some of their technology to China that can be used for artificial intelligence.
Nvidia (NVDA) and AMD (AMD) said Wednesday that they had been told by the US government to halt exports of certain high-performance chips to the world’s second largest economy.
In a regulatory filing, Nvidia said that it had been told by US officials that the requirement was due to a potential risk of the products being used by, or diverted to, a “military end user.”
Nvidia (NVDA) and AMD (AMD) said Wednesday that they had been told by the US government to halt exports of certain high-performance chips to the world’s second largest economy. In a regulatory filing, Nvidia said that it had been told by US officials that the requirement was due to a potential risk of the products being used by, or diverted to, a “military end user.”
I wonder what the penalty is?
And/or will they receive some subsidy for compliance?
What other goods do we export that might be used by the military?
Violations of the Export Administration Regulations, 15 C.F.R. Parts 730-774 (EAR) may be subject to both criminal and administrative penalties. Under the Export Control Reform Act of 2018 (50 U.S.C. §§ 4801-4852) (ECRA), criminal penalties can include up to 20 years of imprisonment and up to $1 million in fines per violation, or both. Administrative monetary penalties can reach up to $300,000 per violation or twice the value of the transaction, whichever is greater. In general, the administrative monetary penalty maximum is adjusted for inflation annually.
Violators may also be subject to the denial of their export privileges as further described below. A denial of export privileges prohibits a person from participating in any way in any transaction subject to the EAR. Furthermore, it is unlawful for other businesses and individuals to participate in any way in an export transaction subject to the EAR with a denied person.