US Senate passes measure that limits Nvidia and AMD’s AI chip exports to China

Artificial intelligence chip firms Nvidia Corp

and Advanced Micro Devices

(AMD) would have to ensure American companies get priority access to their products before China under legislation the US Senate

has passed, a setback for the technology

industry’s efforts to block the measure.

The bipartisan legislation was easily approved in a vote late on Thursday. It is designed to bolster US competitiveness in cutting-edge industries and curb exports to China and other foreign adversaries, according to lead co-sponsor Senator Jim Banks, an Indiana Republican.

US tech leaders and groups have criticised the bill, arguing it would instead restrict competition and weaken innovation.

Senators approved the measure as part of their annual defence policy bill after a month-long stalemate. But its path to becoming law remains unclear.