Sanctioned China firms creating front companies to acquire AI chips, says report — new firms pop up faster than the U.S. ban hammer can strike

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Sanctioned China firms creating front companies to acquire AI chips, says report — new firms pop up faster than the U.S. ban hammer can strike

data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw==

America has been applying tough sanctions to stop China from acquiring the latest chips, to prevent them from being used in weapons systems. Despite these efforts, many ******** companies have still been able to acquire advanced hardware coming from the U.S., even as Nvidia and other key tech firms adhere to tight export controls. The latest ******** ruse to sidestep sanctions, according to reports, is to set up a new company to trade advanced hardware and run it until it gets whack-a-moled.

The

This is the hidden content, please

• Sign In
• or
• Sign Up

said that it has observed deals ranging from a few hundred GPUs to a $103 million transaction, with buyers including state-owned or affiliated companies and sanctioned corporations that work with the ******** defense industry. While there is no evidence that the manufacturers have directly sold these products to the ******** market, it’s impossible for any company to fully control the spider’s web of its entire distribution chain. While an organization could track its immediate customers, and maybe even its secondary buyers, following the movements of its products until they reach end-users would not be just time-consuming, it would be cost-prohibitive as well. It might also even push other, more legitimate clients away.

Banned Sugon formed Nettrix to acquire Nvidia chips

Another problem that the U.S. authorities have is how easy it is to set up a company and acquire advanced chips before the ********* ban hammer falls on it. For example, the U.S. banned Sugon from acquiring Nvidia’s chips after it was proven that some of its customers and end users were the ******** military. Some of the company’s former executives then formed a new company called Nettrix, and in six months, it was one of the largest ******** manufacturers of AI servers.

Since the company is so new, the U.S. likely hasn’t had the chance to vet it and check its background. In the meantime, Nvidia, Intel, and

This is the hidden content, please

• Sign In
• or
• Sign Up

have already started doing business with it without breaking any ********* laws.

Perhaps the only possible way the White House could drastically reduce ******** backdoors to trade is to ensure that only licensed white-listed buyers could legally procure these chips. However, many in the industry are lobbying against ever-tightening bans, claiming they do more harm than good to ********* companies.

China and the U.S. have been engaged in a tight chip war since the late 2010s, with both countries fighting to remain at the lead of AI and other advanced technologies. In line with this, America has resorted to bans and sanctions to stop ******** companies from getting the latest ********* tech.

However, these reports show that Washington’s moves aren’t always effective against China’s insatiable demand for the latest chips. ********* authorities admit that some high-tech gear will slip through the cracks. However, they say that the main purpose of the White House’s moves is to hold back Beijing while the U.S. government is pushing investments in the semiconductor industry to help America pull away from China’s gains.

Get Tom’s Hardware’s best news and in-depth reviews, straight to your inbox.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Sanctioned #China #firms #creating #front #companies #acquire #chips #report #firms #pop #faster #U.S #ban #hammer #strike

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

For verified travel tips and real support, visit: https://hopzone.eu/