Latest news with #BureauofIndustryandSecurity
Yahoo
5 days ago
- Business
- Yahoo
Exclusive-Synopsys halts China sales due to US export restrictions, internal memo shows
By Liam Mo and Brenda Goh BEIJING (Reuters) -Semiconductor design software firm Synopsys has told staff in China to halt services and sales in the country and stop taking new orders to comply with new U.S. export restrictions, according to an internal letter reviewed by Reuters. The U.S. has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licenses already granted to certain suppliers, Reuters reported on Wednesday, citing people familiar with the matter. Products affected include design software and chemicals for semiconductors, they said. Synopsys on Thursday suspended its annual and quarterly forecasts after it received a letter from the Bureau of Industry and Security of the U.S. Department of Commerce, informing it of new export restrictions related to China. The internal letter sent to staff in China on Friday said "based on our initial interpretation, these new restrictions broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025." To ensure compliance, Synopsys said it was blocking sales and fulfillment in China and halting new orders until it receives further clarification. The measures affect all customers in China, including employees of global customers working at sites in China and Chinese military users wherever they are located, the letter added. The steps Synopsys is taking in light of the new restrictions have not been previously reported. Synopsys did not immediately reply to a request for comment. Alongside Cadence and Siemens EDA, Synopsys is among the top three companies that dominate electronic design automation (EDA) software that chipmakers can use to design semiconductors used in everything from smartphones to computers and cars. Restricting Chinese firms' access to EDA tools would be a big blow to the industry as Chinese chip design customers heavily rely on top-of-the-line U.S. software. Synopsys, Cadence and Siemens's Mentor Graphics control more than 70% of China's EDA market, Chinese state news agency Xinhua reported in April. Chinese companies that have said they use Synopsys and Cadence software include design firm Brite Semiconductor, Zhuhai Jieli and semiconductor IP portfolio provider VeriSilicon. The letter sent to staff in China on Friday also said that Chinese customers' access to its customer support portal SolvNetPlus had been disabled. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
What To Expect Now That Trump Has Scrapped Biden's Crippling AI Regulations
President Donald Trump pledged to remove barriers to American leadership in AI in January. The president recently made good on this promise by directing the Bureau of Industry and Security (BIS) to scrap President Joe Biden's Framework for Artificial Intelligence Diffusion on May 13, two days before it was set to go into effect. Although it is unclear what the Trump administration will replace it with, the rescission of the Biden-era framework recognizes the necessity of exporting American chips and AI to maintain America's technological, economic, and strategic dominance. The Biden framework would have amended export regulations to impose a worldwide license regime on all advanced semiconductors designed for data center use. This would have also hit graphics processing units (GPUs) used for AI acceleration, including foreign product chips that are "direct products" of American technology. This would have not only subjected geopolitical rivals such as China to strict controls but also restricted the number of GPUs sold to 150 other countries, many of which are close trading partners and allies, such as Israel, and some which are NATO members (Greece, Portugal, Poland, Latvia, Estonia, and Lithuania), per the Center for Strategic and International Studies. Neil Chilson, head of AI policy at the Abundance Institute, tells Reason that the diffusion framework "established a world-wide regime that would have restricted American companies from trading with friends and allies overseas." Chilson says the rule's rescission helps American companies keep the global lead in AI technology. Keegan McBride, a senior policy adviser in emerging technology and geopolitics at the Tony Blair Institute for Global Change, agrees. McBride tells Reason that rescinding the Biden rule "opens up new opportunities for innovation, economic growth, and global engagement." With the Biden-era framework dead, the Trump administration has announced its "Industry Guidance to Prevent Diversion of Advanced Computing Integrated Circuits." Instead of imposing a complex regulatory scheme, the new guidance informs semiconductor manufacturers how to remain in compliance with existing export restrictions that have been in place since October 2022. The guidance still recognizes the danger of China acquiring advanced chips through transshipment or diversion and by accessing data centers. The guidance also provides "common sense recommendations about how companies can help [prevent] such chips from ending up in Chinese hands," explains Chilson. Chilson anticipates the guidance to be followed by "a new rule that attempts to address some of the divergence scenarios highlighted in the guidance" and expects a more tailored solution that reflects awareness of the negative effects of the Biden approach. Matthew Mittelsteadt, a technology policy research fellow at the Cato Institute, is less optimistic. "At this juncture, the administration has signaled a desire to negotiate controls bilaterally, country by country," which Mittelsteadt warns may lead to "195 country-specific flavors of AI export controls" that would hamper American companies' competitiveness and overburden the license processors at the Commerce Department. Overinclusive regulations like Biden's Framework for Artificial Intelligence Diffusion would have hampered economic growth and national security; capping demand for American-made advanced GPUs reduces revenue to domestic semiconductor and AI firms that require capital to invest in research and development, innovate, and maintain industry dominance. McBride is confident that the Trump administration understands that the "active promotion of American AI to the global community" is a crucial component of winning the AI race against China. Hopefully, he's right. The post What To Expect Now That Trump Has Scrapped Biden's Crippling AI Regulations appeared first on
Reuters
5 days ago
- Business
- Reuters
Synopsys suspends forecasts after US cracks down on China chip software exports
May 29 (Reuters) - Synopsys (SNPS.O), opens new tab suspended its annual and quarterly forecasts just a day after issuing them, as new U.S. export restrictions on China cast uncertainty over its ability to sell chip design software in the key market. The company said it received a letter from the Bureau of Industry and Security (BIS) and the U.S. Department of Commerce, informing Synopsys of new export restrictions related to China, after reporting results on Wednesday. "Synopsys is currently assessing the potential impact of the BIS letter on its business, operating results and financial condition," it said in a statement.
LeMonde
23-05-2025
- Business
- LeMonde
AI race: US-China chip war heats up
It did not take long for tensions to flare once again between the world's two largest powers. No sooner had a truce on tariffs been declared on Monday, May 12, in Geneva between the United States and China than the battle over the strategic sector of artificial intelligence (AI) reignited. As early as May 13, the Trump administration began outlining its strategy to slow China's progress in semiconductor technology, sparking outrage in Beijing. The reason: According to a directive from the Bureau of Industry and Security, the division of the US Department of Commerce responsible for controlling sensitive exports, using Huawei Ascend chips "anywhere in the world" may violate US export control regulations. Washington explained that the latest chips from Chinese manufacturer Huawei, the Ascend 910 models, had been designed or produced with certain software or equipment originating from the US. The phrase "anywhere in the world" has since been removed from the Commerce Department's statement, but the damage was done. "The recent attempt at a complete blockade of Chinese chips is a blatant act of unilateralism and intimidation," condemned Chinese Foreign Minister Wang Yi on May 20. The already fragile atmosphere of dialogue emerging from the 90-day trade truce agreed on the shores of Lake Geneva had begun to unravel. According to Beijing, Washington had "seriously undermined the Geneva consensus." Criminal prosecutions worldwide China warned that anyone complying with US measures would be suspected of violating its own law against foreign sanctions. The result: Any company worldwide purchasing the latest Huawei chips would come under US scrutiny, while those obeying US directives could face criminal prosecution in China.
Yahoo
19-05-2025
- Business
- Yahoo
US pushes world's first location-tracked AI chip law to counter China threat
The United States has intensified its tech crackdown on China with a new legislative push that aims to tighten control over where advanced AI chips end up. On May 9, Senator Tom Cotton (R-Arkansas) introduced the Chip Security Act, a bill designed to prevent adversaries like China from accessing American semiconductor technology through unauthorized diversions or tampering. The move adds a new front in the long-simmering U.S.–China tech war, which has seen sweeping export bans, corporate compliance overhauls, and retaliatory restrictions as both nations vie for supremacy in artificial intelligence and chipmaking. The bill arrives just days after former President Donald Trump announced plans to repeal the Biden-era "AI diffusion rule," which had restricted chip exports to most countries except key allies. 'Expanding access to advanced technology can't come at the cost of our national security,' Cotton wrote Friday on social platform X. 'My Chips Security Act will prevent American chips from falling into the hands of adversaries like Communist China.' The legislation would require the U.S. Department of Commerce to implement a 'location verification mechanism' on export-controlled AI chips and any products that include them, within six months of enactment. These systems would allow companies to track the chips' whereabouts and detect unauthorized transfers or tampering attempts. Exporters would also be required to report any such activity to the Bureau of Industry and Security (BIS). Beyond that, the bill tasks the Commerce Secretary, with input from the Department of Defense, to study other potential chip security mechanisms and determine, over the next several years, whether they should be mandated on advanced chips. The longer timeline reflects the multi-year development cycles in next-generation semiconductor design. The legislation also requires an annual assessment of emerging security mechanisms for the next three years. Based on these assessments, the authorities must determine whether new security features should be mandated for advanced chips. Additionally, the bill mandates yearly recommendations on how to make export control frameworks more flexible. The goal is to streamline shipments to friendly countries while tightening restrictions on adversaries. Senator Cotton's bill is expected to receive attention from both sides of the aisle. Congressman Bill Foster (D-Illinois) is reportedly preparing to introduce a similar measure in the House. Both efforts reflect growing concern in Washington over reports of restricted chip exports still making their way into China, despite current regulations. The bill's introduction also coincides with mounting industry pressure to ease complex restrictions that many claim are harming U.S. companies. NVIDIA recently disclosed it could lose $5.5 billion in revenue because of halted sales to China. The company is now reportedly working on a modified H20 chip that would comply with U.S. rules while maintaining its foothold in global markets. In a recent statement, the BIS called the Biden-era export controls 'overly complex, overly bureaucratic,' adding that they stifle innovation. Tech giants like Microsoft and NVIDIA have also urged the government to reconsider the broad scope of current regulations. The U.S.–China tech rivalry is entering a new phase, driven by legislative action, supply chain surveillance, and political maneuvering. Whether these measures protect American tech without stifling innovation or trade remains to be seen.
