Nvidia and AMD Restricted From Supplying GPUs to China

In a new restriction passed last week, the US government now requires it’s native chip makers to obtain a special license to ship certain products to China.

This would impact Nvidia and AMD, especially who are exporting their GPUs to China to be used in their commercial and military equipment. As the news of new regulation broke out, shares of both Nvidia and AMD have fallen sharply in anticipation of losing valuable trade.

US’ New Trade Restriction Against China

The trade war between US and China is just worsening with every move that either of the countries are making, with the latest one coming from the US. The Asian country has already resisted a number of trade bans against it, including the sanctioning of some of it’s tech giants like Huawei in the US.

And now, the US is stepping up the game with a fresh obligation of restricting critical GPUs to China. As per reports, the chip makers based in the US – like Nvidia and AMD, are supposed to get a special license to export their chips to China. This is to address the risk of chips being “used in, or diverted to a ‘military end use’… in China and Russia”.

Both Nvidia and AMD have already stopped serving Russia after the country invaded Ukraine earlier this year and have been continuing. And losing China – the biggest economy in the world could cost Nvidia millions of dollars in revenue.

In a regulatory filing made last week, Nvidia said the new license requirement would hit it’s A100 and H100 chip exports, which are designed to speed up machine learning tasks, and the systems which include them.

Whereas for AMD, the spokesperson said it would prevent the shipment of it’s MI250 chips to China but were not expected to have “a material impact” on business. Yet, shares of AMD slipped by 3.7% on Thursday, while Nvidia fell 6.6% after the news broke out.

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