Chinese companies are going around US semiconductor export bans. So are American companies.

US-led export bans on high-end semiconductors were intended to slow China's development of their own chip industry. These restrictions have clearly backfired, as Chinese companies are quickly innovating through chipmaking milestones much faster than anticipated.

The restrictions have also led companies to find creative work-arounds to access chips on the market. Western companies legally buy the fastest chips and install them on servers, which are then leased to Chinese firms to do cutting-edge work.

Other approaches involve simply setting up new corporate divisions in China, or relocating existing ones, to place operations beyond the reach of US regulators.

In an ironic twist, market prices for the fastest US-built semiconductors are lower in China than in the US, as fierce competition from Huawei is forcing aggressive price cuts by dealers and cloud servicers.

Resources and links:

Wall Street Journal, China’s AI Engineers Are Secretly Accessing Banned Nvidia Chips
https://www.wsj.com/tech/ai/chinas-ai...

Google, Microsoft & Others Reportedly Offering Chinese Customers Access To NVIDIA’s Cutting-Edge AI Servers
https://wccftech.com/google-microsoft...

Nvidia’s AI chips are cheaper to rent in China than US
https://arstechnica.com/information-t...

SCMP, Intel launches new chip to power Chinese carmakers’ advanced in-vehicle AI initiatives
https://www.scmp.com/tech/big-tech/ar...

SCMP, Intel’s new Chinese chip innovation centre is a collaboration with a Shenzhen district, deepening ties amid US scrutiny
https://www.scmp.com/tech/big-tech/ar...

Roll Call, Treasury seeks tighter rules on US investment in China tech
https://rollcall.com/2024/07/03/treas...

The Accelerated Rise of China’s Semiconductor Industry Amid U.S. Export Bans
https://www.khmertimeskh.com/50155250...

Reuters, Nvidia cuts China prices in Huawei chip fight
https://www.reuters.com/technology/nv...

Closing scene, Macau