Despite the restrictions, Nvidia does not foresee a near-term financial impact. The US Commerce Department has extended special authorizations for major foreign chip makers, such as SK Hynix, Samsung, and TSMC, to receive crucial US chipmaking tools for their plants in China. TSMC is seeking permanent US authorization for its China operations, while Samsung and SK Hynix can indefinitely supply US chip equipment to their China plants without separate US approvals.
Key takeaways:
- New US export restrictions on Nvidia's high-end AI GPU chips to China have come into effect sooner than expected, preventing China, Iran, and Russia from acquiring advanced AI chips.
- Nvidia had designed and released new chips, the A800 and H800, to comply with the initial export rules for the Chinese market. However, the new curbs specifically halt the exports of these modified Nvidia AI chips, including the A100, H100, and L40S chips.
- Nvidia does not anticipate a near-term financial impact from the move due to the strong demand for its products worldwide.
- The US Commerce Department has extended special authorizations for major foreign chip makers, such as SK Hynix, Samsung, and TSMC, to receive crucial US chipmaking tools for their plants in China, in an attempt to mitigate the effects of last year's chip bans.