This chapter explores the underground market for advanced microchips in Shenzhen, revealing how banned AI chips from major companies are still available despite U.S. export restrictions. It shares firsthand reporting experiences and analyzes the challenges faced by manufacturers in tracking their products. The discussion also highlights the implications of U.S. bans on dual-use technology and the steady supply chain dynamics that contradict governmental assumptions.
The U.S. has tried to prevent advanced microchips from getting into the hands of its military rivals. They’ve only had partial success.
(00:21) Alicia Alfiere and Mary Long discuss results from retailers, Abercrombie’s turnaround, and Chewy’s commitment to customers.
Then, (12:40) New York Times reporter Ana Swanson talks with Ricky Mulvey about how Nvidia chips are ending up in China, despite America’s efforts to keep them stateside. Read Ana’s story here.
Companies discussed: CMG, JWN, ANF, CHWY, NVDA
"With Smugglers and Front Companies, China is Skirting American A.I. Bans." https://www.nytimes.com/2024/08/04/technology/china-ai-microchips.html
Host: Mary Long
Guests: Alicia Alfiere, Ana Swanson, Ricky Mulvey
Engineer: Tim Sparks
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