Nvidia, the latest collateral damage in the US-China tech war – TechCrunch

Nvidia, the world’s largest maker of artificial intelligence chips, is at the center of a new round of US technology sanctions targeting China.

In its SEC filing, Nvidia said it would make new exports of two of its most advanced AI chips to China, the second-largest market after Taiwan, where the U.S. government will account for 26% of revenue in 2021. I pointed out that I imposed a limit.

The ban could cost Nvidia up to $400 million in potential sales to China in the third quarter, the company said.

Export controls also bar Nvidia from shipping chips to Russia, although the company says it does not currently sell to Russia.

The U.S. government said the move “addresses the risk that covered products may be used or diverted for ‘military end uses’ or ‘military end consumers’ in China and Russia.” Stated. But the ban actually puts pressure on the various companies and organizations that use silicon beyond military applications.

The two chips in question are the Nvidia A100 and H100 graphics processing units. The A100 is designed to provide high-performance computing, storage and networking capabilities to industries spanning healthcare, finance and manufacturing, said Chinese e-commerce and cloud computing giant Alibaba, a user of the A100. I’m explaining.

The H100 is the company’s upcoming enterprise AI chip, which is expected to ship by the end of this year, with some of its production taking place in China.

Nvidia’s involvement with China isn’t completely cut off. The US government has allowed Nvidia to continue manufacturing his H100 in China, he said in a separate document, but access by Chinese customers will remain restricted.

The ban is “scientific supremacy,” snapped Chinese Foreign Ministry spokesman Wang Wenbin at a regular press briefing on Thursday. “The United States seeks to use its technological prowess to its advantage to hinder and stifle the development of emerging market and developing nations.”

The US move to ban access to China’s high-end technology has accelerated China’s pursuit of independence. Huawei has stepped up its efforts to develop chips for smartphones since Washington put it on its export embargo list in 2019, citing national security concerns.

China may still be a generation behind in producing the most sophisticated chips, but it is slowly gaining dominance in low-end specialty semiconductors, such as the neural processing units that power cell phone cameras. . It remains to be seen what ramifications Nvidia’s ban will create.

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