The Next Front in the U.S.-China Battle Over Chips

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.https://www.nytimes.com/2024/01/10/technology/risc-v-china-united-states-chips-security.html?unlocked_article_code=1.Mk0.iR7l.PFiJCmnGgCh9&smid=url-share

The Next Front in the U.S.-China Battle Over Chips

A U.S.-born chip technology called RISC-V has become critical to China’s ambitions. Washington is debating whether and how to limit the technology.


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CreditCredit...Nick Little

By Don Clark and Ana Swanson

Don Clark, who covers the chip industry, reported from San Francisco and Santa Clara, Calif., and Ana Swanson, who covers trade, reported from Washington.

Jan. 10, 2024, 5:01 a.m. ET

NASA has chosen the technology to help it land future spacecraft on unmapped planets. Meta uses the technology for artificial intelligence. Chinese engineers have turned to it to encrypt data.

And it could represent the next front in the semiconductor trade war between the United States and China.

The technology is RISC-V, pronounced “risk five.” It evolved from a university computer lab in California to a foundation for myriad chips that handle computing chores. RISC-V essentially provides a kind of common language for designing processors that are found in devices like smartphones, disk drives, Wi-Fi routers and tablets.

RISC-V has ignited a new debate in Washington in recent months about how far the United States can or should go as it steadily expands restrictions on exporting technology to China that could help advance its military. That’s because RISC-V, which can be downloaded from the internet for free, has become a central tool for Chinese companies and government institutions hoping to match U.S. prowess in designing semiconductors.

Last month, the House Select Committee on the Chinese Communist Party — in an effort spearheaded by Representative Mike Gallagher, Republican of Wisconsin — recommended that an interagency government committee study potential risks of RISC-V. Congressional aides have met with members of the Biden administration about the technology, and lawmakers and their aides have discussed extending restrictions to stop U.S. citizens from aiding China on RISC-V, according to congressional staff members.

The Chinese Communist Party is “already attempting to use RISC-V’s design architecture to undermine our export controls,” Representative Raja Krishnamoorthi of Illinois, the ranking Democrat on the House select committee, said in a statement. He added that RISC-V’s participants should be focused on advancing technology and “not the geopolitical interests of the Chinese Communist Party.”

Arm Holdings, a British company that sells competing chip technology, has also lobbied officials to consider restrictions on RISC-V, three people with knowledge of the situation said. Biden administration officials have concerns about China’s use of RISC-V but are wary about potential complications with trying to regulate the technology, according to a person familiar with the discussions. The Department of Commerce and the National Security Council declined to comment.



The Global Race for Computer Chips​



The debate over RISC-V is complicated because the technology was patterned after open-source software, the free programs like Linux that allow any developer to view and modify the original code used to make them. Such programs have prompted multiple competitors to innovate and reduce the market power of any single vendor.

But RISC-V is not code that can directly be used to make anything. It is a set of basic computing instructions that determine the calculations a chip can perform. Engineers can download these instructions and incorporate them in the much more complex task of creating design blueprints for parts of a semiconductor. Many companies sell RISC-V chip designs, and some universities and other institutions distribute them free.

As with Linux — but not technologies from companies like Arm and Intel — engineers around the world can make suggestions to enhance the underlying instructions. That process is overseen by RISC-V International, a nonprofit with more than 4,000 members — including the Chinese Academy of Sciences and Chinese firms like Huawei and Alibaba, as well as Google and Qualcomm — in 70 countries.

The group changed its incorporation from the United States to Switzerland in 2020 to calm “concerns of political disruption” and control by any single country. Its leaders said their model mirrored that of other international groups that govern standard technologies like Ethernet and Wi-Fi.

“Open standards have been around for 100 years,” Calista Redmond, chief executive of RISC-V International, said in an interview. “This is no different.”

Open-source technologies have generally been granted exceptions to U.S. export controls. Any change to that treatment “is certainly going to raise thorny legal issues and important public policy concerns,” said Daniel Pickard, a lawyer specializing in trade and national security at Buchanan Ingersoll & Rooney.

U.S. regulations limit Arm and RISC-V companies from exporting chip designs to China based on certain performance limits. But trying to restrict the underlying instructions is like trying to control words or letters, Silicon Valley executives said.

“It is absolutely silly,” said Dave Ditzel, the chief technology officer of Esperanto Technologies, a chip start-up that uses RISC-V. “It’s like saying, ‘Well, the Chinese can read a book on nuclear weapons that’s written in English, so let’s solve the problem by banning the English alphabet.’”

As RISC-V helps Chinese firms including Huawei design more of the world’s semiconductors, some U.S. officials have raised concerns that Beijing could use Chinese foundries to insert cyber vulnerabilities into chips that may be used to cripple American electrical grids and other critical infrastructure.

RISC-V backers counter that technologies with inner details that can be openly studied are much more secure. Any new restrictions, RISC-V backers said, would weaken U.S. influence over the technology while doing little to hold China back because the instruction set is already widely distributed.

The original inspiration for RISC-V was saving money. Starting in 2010, a professor and two graduate students began developing a new instruction set based on technology pioneered by David Patterson, a computer science professor at the University of California, Berkeley, who had helped invent reduced instruction set computing, or RISC. The aim was to help study the inner workings of computing without having to pay Arm, which charges royalties for every chip that uses its technology.

“I just wanted to learn how to build computers,” said Yunsup Lee, one of the graduate students, who now works at SiFive, a start-up that sells RISC-V designs. Then the goal evolved “to benefit everybody in the world,” he said.

The RISC-V variant swiftly attracted interest among engineers. Having a standard set of instructions can allow software programs to work on all chips that use them.

In China, engineers and officials were also quick to see the potential, viewing open-source technology as a way to become self-sufficient and counter risks like embargoes and supply interruptions, Ni Guangnan, a researcher at the Chinese Academy of Sciences, wrote in an article about RISC-V in June.

In 2019, Mr. Patterson, who now works at Google, helped establish a RISC-V lab in Shenzhen, China, which was supported by an institute set up earlier by Berkeley and Tsinghua University in China. Representative Gallagher, in a video his committee released in November, expressed concerns about the professor’s work and collaboration between the institute and organizations with links to Chinese military and intelligence activities.

Mr. Patterson declined to comment through a Google spokeswoman.

A U.C. Berkeley spokesman said that the university’s work with the institute had been basic research that was unrestricted, and that the university was responding to requests for information from Congress.

More than 100 “significant” Chinese companies are designing chips with RISC-V today, as are at least 100 more start-ups, said Handel Jones, an analyst at International Business Strategies. Many of the applications are in fairly mundane consumer products, but engineers believe the technology will eventually take over some of the most demanding tasks.

Chinese aerospace scientists have proposed using RISC-V to develop high-performance spaceborne computers. Other Chinese companies and institutions are aiming to string together RISC-V processors to run bigger jobs in data centers, including A.I. applications.

At a RISC-V conference in Silicon Valley in November, T-Head, Alibaba’s semiconductor subsidiary, discussed RISC-V designs that Sophgo, another Chinese company, used in a chip powering a large server deployed at Shandong University in China. It’s the first instance of RISC-V technology’s running a cloud-style computing service, the companies said.

“We just made a small step, but we put RISC-V on the starting line,” David Chen, ecosystem director at Alibaba, said at the event.
 

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Report: Black market keeps Nvidia chips flowing to China military, government​

Unknown suppliers keep Nvidia's most advanced chips within China's reach.​

ASHLEY BELANGER - 1/15/2024, 2:01 PM

An Nvidia H100 graphics processor chip.

Enlarge / An Nvidia H100 graphics processor chip.

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China is still finding ways to skirt US export controls on Nvidia chips, Reuters reported.

A Reuters review of publicly available tender documents showed that last year dozens of entities—including "Chinese military bodies, state-run artificial intelligence research institutes, and universities"—managed to buy "small batches" of restricted Nvidia chips.

The US has been attempting to block China from accessing advanced chips needed to achieve AI breakthroughs and advance modern military technologies since September 2022, citing national security risks.

Reuters' report shows just how unsuccessful the US effort has been to completely cut off China, despite repeated US attempts to expand export controls and close any loopholes discovered over the past year.

China's current suppliers remain "largely unknown," but Reuters confirmed that "neither Nvidia" nor its approved retailers counted "among the suppliers identified."

An Nvidia spokesperson told Reuters that the company "complies with all applicable export control laws and requires its customers to do the same."

"If we learn that a customer has made an unlawful resale to third parties, we'll take immediate and appropriate action," Nvidia's spokesperson said.

It's also still unclear how suppliers are procuring the chips, which include Nvidia's most powerful chips, the A100 and H100, in addition to slower modified chips developed just for the Chinese market, the A800 and H800. The former chips were among the first banned, while the US only began restricting the latter chips last October.

Among military and government groups purchasing chips were two top universities that the US Department of Commerce has linked to China's principal military force, the People's Liberation Army, and labeled as a threat to national security. Last May, the Harbin Institute of Technology purchased six Nvidia A100 chips to "train a deep-learning model," and in December 2022, the University of Electronic Science and Technology of China purchased one A100 for purposes so far unknown, Reuters reported.

Other entities purchasing chips include Tsinghua University—which is seemingly gaining the most access, purchasing "some 80 A100 chips since the 2022 ban"—as well as Chongqing University, Shandong Chengxiang Electronic Technology, and "one unnamed People's Liberation Army entity based in the city of Wuxi, Jiangsu province."

In total, Reuters reviewed more than 100 tenders showing state entities purchasing A100 chips and dozens of tenders documenting A800 purchases. Purchases include "brand new" chips and have been made as recently as this month.

Most of the chips purchased by Chinese entities are being used for AI, Reuters reported. None of the purchasers or suppliers provided comments in Reuters' report.

Nvidia's highly sought-after chips are graphic processing units capable of crunching large amounts of data at the high speeds needed to fuel AI systems. For now, these chips remain irreplaceable to Chinese firms hoping to compete globally, as well as nationally, with China's dominant technology players, such as Huawei, Reuters suggested.

While the "small batches" of chips found indicate that China could still be accessing enough Nvidia chips to enhance "existing AI models," Reuters pointed out that US curbs are effectively stopping China from bulk-ordering chips at quantities needed to develop new AI systems. Running a "model similar to OpenAI's GPT would require more than 30,000 Nvidia A100 cards," research firm TrendForce reported last March.

For China, which has firmly opposed the US export controls every step of the way, these curbs remain a persistent problem despite maintaining access through the burgeoning black market. On Monday, a Bloomberg report flagged the "steepest drop" in the value of China chip imports ever recorded, falling by more than 15 percent.

China’s black market for AI chips​

The US still must confront whether it's possible to block China from accessing advanced chips without other allied nations joining the effort by lobbying their own export controls.

In October 2022, a senior US official warned that without more cooperation, US curbs will "lose effectiveness over time." A former top Commerce Department official, Kevin Wolf, told The Wall Street Journal last year that it's "insanely difficult to enforce" US export controls on transactions overseas.

Part of the problem, sources told Reuters in October 2023, is that overseas subsidiaries were "easily" smuggling restricted chips into China or else providing remote access to chips to China-based employees.

On top of that activity, a black market for chips developed quickly, selling "excess stock that finds its way to the market after Nvidia ships large quantities to big US firms" or else chips imported "through companies locally incorporated in places such as India, Taiwan, and Singapore," Reuters reported.

The US has maintained that its plan is not to ensure that China has absolutely no access but to limit access enough to keep China from getting ahead. But Nvidia CEO Jensen Huang has warned that curbs could have the opposite effect. While China finds ways to skirt the bans and acquire chips to "inspire" advancements, US companies that have been impacted by export controls restricting sales in China could lose so much revenue that they fall behind competitively, Huang predicted.

One example likely worrying to Huang and other tech firms came last November, when Huawei shocked the US government by unveiling a cutting-edge chip that seemed to prove US sanctions weren't doing much to limit China's ability to compete.
 
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