July 31 (Reuters) - The U.S. is considering unilateral
restrictions on China's access to AI memory chips such as those
made by Micron Technology ( MU ) and SK Hynix ( HXSCF ) and
equipment capable of making such semiconductors, as soon as next
month, Bloomberg News reported on Wednesday.
The measures are meant to prevent Micron, and South Korea's
SK Hynix ( HXSCF ) and Samsung from suppling Chinese firms
with high bandwidth memory (HBM) chips that are essential in
helping run complex generative artificial intelligence programs,
the report said, citing people familiar with the matter.
The U.S. Department of Commerce declined to comment, while
the companies did not immediately respond to Reuters requests
for comment.
If enacted, the new rule would capture HBM2 and more
advanced chips including HBM3 and HBM3E, as well as the tools
required to make them, the report said, adding that no final
decision on the restrictions has been made.
HBM chips are needed to run AI semiconductors such as those
sold by market leader Nvidia and aspiring competitor
AMD.
Micron will be largely unaffected as the chipmaker has held
back from exporting its HBM products to China after Beijing
banned its memory chips from critical infrastructure in 2023,
the report said.
It was unclear what authority the U.S. would use to restrict
the South Korean firms, the report said.
This could include the foreign direct product rule, or FDPR,
which lets the U.S. impose controls on foreign-made products
that use some amount of American technology, according to the
report.
SK Hynix ( HXSCF ) and Samsung extensively utilize technology from
American firms such as Applied Materials and Cadence
Design Systems.
While the new measures would curb direct sales of HBM chips
to Chinese companies, it's unclear whether selling high-end
memory chips bundled together with AI accelerators to China
would be permissible, the report said.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Devika
Syamnath)