TAIPEI (Taiwan News) — New American sanctions on exports to China by major US chipmakers are expected to hurt suppliers in Taiwan, an analyst said this week. 

On Wednesday, the US Department of Commerce announced new export licensing requirements to China for Nvidia's H20 and AMD's MI308 chips, per CNA. Taiwan Industry Economics Database researcher Liu Pei-chen (劉佩真) said these new requirements will hurt the two companies and their Taiwanese suppliers.

In addition, an industrial expert who spoke anonymously to CNA criticized the sanctions, as the two chips were made to comply with US export restrictions on China. Nvidia and AMD will bear the burden, which in turn will harm their suppliers in Taiwan, the individual said. 

The expert said the sanctions are unlikely to impact China in the short term, as Chinese buyers stockpiled H20 and MI308 chips. US sanctions could also drive Chinese chipmakers to hasten their chip production in a move towards greater self-sufficiency.

The companies in Taiwan most likely to be impacted by the new regulations are AI server makers. Inventec and Mitac Holdings supply Chinese cloud service providers such as Baidu, Alibaba, and Tencent.