The news: Alibaba, Nvidia, and Biren Technology are some of the chipmakers reducing processing speeds of their chip designs to avoid US-imposed sanctions aimed at suppressing Chinese computing power, per Ars Technica.
Recouping investments: Alibaba, Biren, and other Chinese design houses have spent years and millions of dollars creating the blueprints for advanced processors to power the country’s next generation of supercomputers, artificial intelligence algorithms, and data centers.
What’s next? “Attempting to freeze a country in place for a technological level of hardware is a big deal,” said Paul Triolo, head of tech policy at consulting group ASG. “That is what the US is trying to do by restricting sales and closing off the manufacturing road map to get to these advanced levels of hardware.”
What's the catch? Larger chipmakers have the latitude to throttle their existing chip designs for lower performance output, but smaller manufacturers will have a harder time adhering to the US chip sanctions.
This article originally appeared in Insider Intelligence'sConnectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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