Nvidia to Develop New Chips for Chinese Market Amid US Export Control Curbs

Nvidia, the US semiconductor giant, is set to tailor new artificial intelligence (AI) chips for Chinese customers after its A800 and H800 graphics processing units (GPUs) were banned under the updated US export control regime.

Credit: REUTERS

The move highlights the significance of the Chinese market for US chip firms and their efforts to comply with evolving trade restrictions.

According to a distributor of Nvidia chips in China, the company has developed a new server called the HGX H20, along with two new GPUs, the L20 and L2, to replace the A800 and H800 GPUs. These new chips are designed to comply with the latest US export rules. The development was first reported by Chinese media outlet CLS.cn.

The new products are said to be modified versions of the H100 GPU, which was also blocked from being sold to China in August 2022. Nvidia has not yet commented on the matter.

This move by Nvidia underscores the importance of the Chinese market for US chip companies and their willingness to adapt to comply with US trade restrictions. Micron Technology, another US chip maker, recently participated in the China International Import Expo to demonstrate its commitment to the Chinese market.

The updated US export controls, aimed at curbing China's AI and semiconductor manufacturing ambitions, will prohibit the sale of A800 and H800 GPUs to China after November 17. These GPUs have been in high demand from major Chinese tech companies such as Tencent, Alibaba and ByteDance.

Nvidia's data center revenue from the Chinese market accounted for about 20 to 25 percent in the latest quarter. In the second quarter of 2023, the company's data center revenue reached a record $10.32 billion, a significant increase from the previous year.

---

• Nvidia is developing new AI chips for Chinese customers after its A800 and H800 GPUs were banned under the updated US export control regime.

• The new chips, including the HGX H20 server and the L20 and L2 GPUs, are designed to comply with the latest US export rules.

• The move highlights the importance of the Chinese market for US chip firms and their efforts to remain compliant with evolving trade restrictions.

Source: SCMP