Biden administration to expand US regulations from AI GPUs to the DRAM industry in China

US government reportedly planning on expanding restrictions on the Chinese DRAM industry, after its massive regulations on the AI GPU industry in China.

3 minutes & 9 seconds read time

The US government is reportedly gearing up to expand its restrictions on China, moving from the AI GPU industry into the DRAM industry in the country. This could have a devastating effect on local manufacturers who are involved in the production of DRAM.

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Business Korea is reporting that the Biden administration is ramping up its restrictions on Chinese technology manufacturers, with the Bureau of Industry and Security (BIS), managed by the US Department of Commerce, planning to survey around 100 different companies in multiple industries to assess their dependency on Chinese suppliers.

Depending on how this survey goes, the US will reshape its trade policy moving into the future, where it's expected to see US sanctions and its net on CHina getting bigger and bigger, which will eventually move into the defense-focused industries as well. AI GPUs were the beginning it seems, DRAM is another important part, and the dominoes keep falling.

In China, there are DRAM manufacturers like Yangtze Memory Technologies (YMTC), Changxin Memory Technologies (CMT), and SMIC that will be affected. We've already seen Apple canceling its memory chip acquisition from YMTC because of US sanctions, which affected both companies alike. YMTC took huge financial losses because of the Biden administration, and I'm sure many other companies are making sure they're not put in that position.

How? Well, Chinese manufacturers will simply stop doing business with US companies if the Biden administration is shifting into favoring "national security" by having its DRAM, AI GPUs, and defense technology made in other countries other than China. Personally, I don't know how this wasn't done decades ago -- or allowed to have any important technology with trade secrets, IP, and more -- to be made in China. We're seeing it now.

Throughout all of this, there will be other winners: South Korean companies like Western Digital, Samsung, SK hynix, and others will see demand for their DRAM (and other products) expand because South Korean companies have the tick of approval to do business in the United States. These companies also have flagship-level facilities in China so that the US government could give them exceptions in trade controls.

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This is something the US government has done before under its "Verified End User" (VEU) regulations. The DRAM industry has been suffering of late, but the influx of orders, because US companies can't use Chinese-manufactured DRAM will only be a huge injection of sales for South Korean DRAM makers.

AI GPUs... DRAM... what next? Taiwan is still the center of this all, and pissing China off doesn't feel like it will end well.

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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