US restricts shipments of chips from Nvidia and AMD to China

Nvidia officially confirmed that the United States restrict deliveries to China high-end graphics processors and AI accelerators used in high-performance computing. This decision would also affect AMD.

On August 26, 2022, the US government notified Nvidia that it was imposing a new licensing requirement, effective immediately, for any future exports to China (including Hong Kong) and Russia of the upcoming A100 and H100 ICs.

The US government has indicated that the new licensing requirement will address the risk of covered products being used or diverted to “military end use” in China and Russia.

Specifically designed for artificial intelligence (AI), data analytics, and high-performance computing (HPC) applications, the GPU Nvidia A100 Tensor Core offers unprecedented acceleration capabilities at all levels to meet the demands of the most powerful data centers in the world, emphasizes the manufacturer.

Any other system incorporating A100 ICs or the future H100 and A100X are also covered by the new licensing requirement. The license requirement also includes any future Nvidia ICs achieving both peak performance and chip-to-chip I/O performance at or above thresholds roughly equivalent to the A100, as well as any system which includes these circuits.

Nvidia points out in a document filed with the SEC that this decision could have an impact of approximately $400 million on its sales in China for its third fiscal quarter.

Unsurprisingly, China reacted stressing that these practices constitute a violation of international economic and trade rules.

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