close
close

US Bans Export Of Nvidia AI Chips To China

China has condemned the US move to end access to high-end processors made by chipmaker Nvidia after Washington stepped up efforts to limit exports of cutting-edge technology to trade and military rivals.

U.S. officials have told Nvidia to stop selling two chips designed for artificial intelligence to Chinese companies, the company said in a filing Wednesday. The government imposes licensing requirements on all products, including the A100 and upcoming H100 integrated circuits used in machine learning processes that power AI systems.

The order is effective immediately for chips destined for China and Russia, and will apply to future products that match the performance of the A100.

The move marks the latest salvo from the United States to restrict technology exports to China over concerns it could be used for military purposes. Washington has imposed restrictions on technology exports to many Chinese companies, taking aim at China’s move to become self-sufficient in semiconductors.

A senior Chinese foreign ministry official, Wang Wenbin, said the United States was trying to impose a “technology blockade” on China. He said the ban shows that the United States is seeking to maintain its “technological hegemony.”

Nvidia said Washington indicated the new licensing requirements would address the risk that its products could be used or diverted to military users in China and Russia. added. The company’s shares fell 5.7% in early New York trading.

Shu Jueting, head of China’s Ministry of Commerce, said the move undermines the legitimate rights and interests of Chinese companies and the stability of global industrial and supply chains.

In its filing, Nvidia said it “engages with customers in China” and “seeks to satisfy planned or future purchases of our data center products with products that are not subject to the new licensing requirements.” increase.

According to analysts at investment bank Jefferies, the biggest users of chipsets in China were cloud service providers and internet giants. According to them, there is no direct local replacement, and one alternative is to use multiple low-end processors from Nvidia, which are not banned. This attempt to replicate processing power would not achieve the same speed and would cost much more, they added.

Nvidia said it had about $400 million in sales in China this quarter, which could be affected by new licensing requirements.

Shares of the chipmaker fell 6% in Thursday’s pre-market trading on the news, hurting shares of other semiconductor companies. Nvidia rival Advanced Micro Devices told Reuters that it has received new licensing requirements that would stop it from exporting its MI250 AI chip to China.

Leave a Comment