Nvidia Collaborates with US Government to Ensure Compliance with Export Controls for New China Chips

Nvidia has been making headlines as it cautiously navigates the US government's export restrictions while catering to the Chinese market. Recently, the semiconductor giant revealed plans to introduce three new chips specifically designed for China, namely the HGX H20, L20 PCIe, and L2 PCIe. However, the launch of H20—the most advanced among the trio—is facing delays into the next year due to integration challenges faced by server manufacturers.

Adhering to Updated Export Restrictions

In response to updated export control regulations issued in October, Nvidia is closely cooperating with US authorities. These restrictions directly impact the sale of chips, such as the A800 and H800, which were developed for the Chinese market. The move comes as part of a broader strategy to impede China’s access to sophisticated semiconductor technology. In the previous year, similar restrictions barred Nvidia from selling its A100 and H100 chips to China, prompting the company to offer the A800 and H800 as alternatives.

Formulating Compliant Products

Speaking at a news conference in Singapore, Nvidia's CEO Jensen Huang mentioned that the company is actively working with the US government to create products that conform to the new limitations. He also recognized Huawei Technologies as a formidable competitor in the market. Moreover, Nvidia has anticipated a substantial decline in sales within China as a consequence of the export restrictions, noting that China typically accounts for about 20% of its revenue—a figure now uncertain due to the current restrictions.

Engagements with Singapore

Beyond China, Nvidia is engaging in discussions with Singapore regarding potential significant investments. In collaboration with the country, Nvidia aims to aid the development of Singapore's large language model, Sealion. This initiative is part of Singapore's broader effort to establish Southeast Asia's first large language model ecosystem, a project supported by multiple national bodies and a S$70M fund from the National Research Foundation.

Nvidia's stock showed a positive trend, increasing by 1.36% to $471.98 in the premarket on December 6.

Nvidia, export, compliance