{"id":33601,"date":"2023-11-10T09:19:52","date_gmt":"2023-11-10T09:19:52","guid":{"rendered":"https:\/\/isafespend.com\/news\/nvidia-will-reportedly-sell-new-chips-to-china-that-still-meet-u-s-rules\/"},"modified":"2023-11-10T09:19:53","modified_gmt":"2023-11-10T09:19:53","slug":"nvidia-will-reportedly-sell-new-chips-to-china-that-still-meet-u-s-rules","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=33601","title":{"rendered":"Nvidia will reportedly sell new chips to China that still meet U.S. rules"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"group\">\n<p>BEIJING \u2014 U.S. chipmaking giant <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">Nvidia<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> has reportedly found a way to sell high-end chips to Chinese companies \u2014 while remaining compliant with U.S. rules aimed at curbing China&#8217;s access to the tech.<\/p>\n<p>China accounts for 20% to 25% of Nvidia&#8217;s revenue in its data center business, its biggest unit.<\/p>\n<p>Nvidia is set to deliver three new chips to domestic manufacturers in the coming days, Chinese financial media Cailian Press said Thursday, citing sources.<\/p>\n<p>The chips \u2014 called HGX H20, L20 PCle and L2 PCle \u2014 are based on Nvidia&#8217;s H100 chip, the report said.<\/p>\n<p>The H100 and A100 artificial intelligence chips were the first to be hit by new U.S. restrictions last year that aimed to curb sales to China. Nvidia said in a September 2022 filing the U.S. government would still allow it to develop the H100 in China.<\/p>\n<\/div>\n<blockquote data-test=\"Pullquote\">\n<div class=\"Pullquote-pullquote\" style=\"border-top-color:#002f6c\">\n<div>\n<p>In the near term, Chinese manufacturers have no better option and they will continue to buy Nvidia&#8217;s chips, while searching for replacements.<\/p>\n<div class=\"Pullquote-sourceWrapper\">\n<p>Bo Du<\/p>\n<p>managing director, WestSummit Capital Management<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<div class=\"group\">\n<p>Companies in China had then switched to Nvidia&#8217;s H800 and A800 chips, but the U.S. subsequently clamped down on those sales last month with new restrictions.<\/p>\n<p>The H20&#8217;s computing power is only about 50% of that of the A100, said Bo Du, managing director at WestSummit Capital Management and a former engineer in the chip industry.<\/p>\n<p>That&#8217;s &#8220;basically saying goodbye to physical simulation,&#8221; he said in Mandarin, translated by CNBC. While it&#8217;s possible to use clusters of lower-power chips to support large model calculations, he said there&#8217;s no ideal solution given the costs.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107330958\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107330958\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000321965\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>&#8220;In the near term, Chinese manufacturers have no better option and they will continue to buy Nvidia&#8217;s chips, while searching for replacements,&#8221; Du said, noting that some large internet companies have started to buy domestically-made AI chips at scale.<\/p>\n<p>Demand for artificial intelligence computing power has only gone up as companies in China rush to develop local versions of OpenAI&#8217;s ChatGPT.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Navigating a fine line<\/h2>\n<div class=\"group\">\n<p>The Financial Times also reported the news of Nvidia&#8217;s new chips for the China market, citing a document the chipmaker distributed to potential customers.<\/p>\n<p>Nvidia declined to comment. The U.S. Department of Commerce and the Bureau of Industry and Security did not immediately respond to a CNBC request for comment.<\/p>\n<p>All three of Nvidia&#8217;s new chips have operating metrics outside the threshold of the U.S. restrictions, research firm SemiAnalysis said in an online post Thursday. The company operates a Substack tech newsletter that claims to have more than 64,000 subscribers.<\/p>\n<p>&#8220;Nvidia is perfectly straddling the line on peak performance and performance density with these new chips to get them through the new US regulations,&#8221; SemiAnalysis said.<\/p>\n<p>Nomura analysts previously found Nvidia&#8217;s Drive AGX Orin chip also did not meet all the criteria warranting a U.S. restriction on sales to China, allowing electric car companies in the country to still use the chip.<\/p>\n<\/div>\n<div class=\"group\">\n<p>The U.S. has said its focus is on limiting China&#8217;s development of advanced tech for military use. President Joe Biden&#8217;s administration has also emphasized the country is in competition with China.<\/p>\n<p>Domestic players are trying to develop workarounds to the U.S. restrictions.<\/p>\n<p>In late August, Huawei released a smartphone that reviews indicated offers\u00a0download speeds associated with 5G, thanks to an advanced semiconductor chip.<\/p>\n<p>It&#8217;s not clear whether older equipment or alternative procurement processes were involved with the latest chip production.<\/p>\n<p><em>\u2014 CNBC&#8217;s Arjun Kharpal contributed to this report.<\/em><\/p>\n<\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.cnbc.com\/2023\/11\/10\/nvidia-will-reportedly-sell-new-chips-to-china-that-still-meet-us-rules.html\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BEIJING \u2014 U.S. chipmaking giant Nvidia has reportedly found a way to sell high-end chips to Chinese companies \u2014 while remaining compliant with U.S. rules aimed at curbing China&#8217;s access to the tech. China accounts for 20% to 25% of Nvidia&#8217;s revenue in its data center business, its biggest unit. Nvidia is set to deliver<\/p>\n","protected":false},"author":1,"featured_media":29253,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":{"0":"post-33601","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Nvidia will reportedly sell new chips to China that still meet U.S. rules | iSafeSpend<\/title>\n<meta name=\"description\" content=\"BEIJING \u2014 U.S. chipmaking giant Nvidia has reportedly found a way to sell high-end chips to Chinese companies \u2014 while remaining compliant with U.S. rules\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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