Some high-end servers banned from sale to India
But manufacturers said the sanctions would probably only apply to a few of their systems.
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 | When is a banned supercomputer not so super? Ask Sun Microsystems. |
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While manufacturers including Hewlett-Packard Co. (HWP), IBM Corp. (IBM), Sun Microsystems Inc. (SUNW) and Silicon Graphics Inc. (SGI) on Wednesday were still assessing exactly which of their systems would be prohibited from export to India, they said only a tiny fraction of their business was likely to see any impact.
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The Nuclear Proliferation Prevention Act of 1994 requires the president to stop the sale of "defense articles, defense services, or design and construction services" to a country that attempts to become a nuclear power by detonating atomic weapons.
Tuesday night, President Clinton announced the law would be put into practice for the first time, following India's underground nuclear detonations.
The law will probably cover computers powerful enough to be used as weapons, for example in planning nuclear strategy, according to observers.
High-powered machines targeted
While it is not yet clear exactly which computers might be included under this designation, certain "high-powered" computers must be registered with the U.S. government before they can be exported to India and other countries.
| Manufacturers said the sanctions would probably only apply to a few of their systems. |
Computer makers expect the sanctions to apply to these high-powered machines, which the Commerce Department's Bureau of Export Administration defines as machines with computing speeds of between 2,000 and 7,000 MTOPS (million theoretical operations per second).
But that designation does not apply to common PCs or even most servers. HP representatives said that of their highest-end line of technical servers, only a few would be designated as high-powered.
HP spokesman Brad Whitworth was not sure whether HP had ever even sold such a machine to India, or had plans to do so.
HP impact unknown
"We certainly sell a lot more PCs than we do supercomputers," Whitworth said. "Will this affect HP's business? Theoretically it could, but in reality, I don't know."
Supercomputers aside, HP sells about $150 million in exports to India -- less than 1 percent of the company's total $43 billion in worldwide sales.
A number of U.S. computer firms have operations within India, which are not expected to be affected by the sanctions.
HP, for example, employs 325 people there in manufacturing and sales operations.
Intellectual trade continues
Observers expect the intellectual trade between India and Silicon Valley -- mostly Indian programmers working or studying in the U.S. -- to continue unaffected by the sanctions.
There is some question, however, about the broad economic impact the sanctions will have on India's nascent high-tech industry, which is centered around Bangalore.
According to the U.S. Special Trade Representative's office, the White House has not yet clarified exactly what computer equipment will be affected by the sanctions.