Nvidia could lose $400M over China chip ban - Mobile World Live

Nvidia could lose $400M over China chip ban

01 SEP 2022
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Nvidia could lose up to $400 million in potential sales in fiscal Q3 after the US government banned exports of two chips for AI-related applications to China.

The US government imposed a new export licence requirement that affects Nvidia’s A100 and H100 chips.

In a Securities and Exchange Commission (SEC) statement, the chip designer noted that sales will be affected if customers do not buy alternative Nvidia products. It plans to apply for exemptions to the rule.

Nvidia also indicated that the new licence requirement could have an adverse impact on the completion of the flagship H100 chip.

The US government also banned exports of the chips to Russia, but Nvidia does not sell products there.

The government told Nvidia the new rule “will address the risk that products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia”.

Advanced Micro Devices (AMD) told Reuters it had been informed of new licence requirements preventing exports to China of its MI250 AI chips. However, AMD does not expect the new rules to have a material impact on its business.

Reuters reported that the Chinese foreign ministry accused the United States of attempting to impose a “tech blockade” on China. The country’s commerce ministry reportedly said such actions would undermine the stability of global supply chains.

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Anne Morris

Anne Morris is a freelance journalist and contributes news and analysis to Mobile World Live.

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