Nvidia & AMD AI Chip Sales to China: Adapting to US Restrictions

GPU Sales to China Adapt to Export Restrictions

In response to U.S. export controls on sophisticated semiconductor technology, both Nvidia and AMD are preparing to offer specialized GPUs to the Chinese market. This information comes from supply chain sources cited by the Taiwanese tech news outlet DigiTimes.

These new GPUs are specifically designed for artificial intelligence (AI) applications. The adjustments are being made to ensure compliance with regulations limiting the export of advanced chips to China.

Nvidia and AMD’s Strategies

Nvidia is developing a modified AI GPU, internally referred to as “B20,” with reduced capabilities. AMD, conversely, intends to address the demand for AI processing power with its Radeon AI PRO R9700 workstation GPU.

According to reports, sales of these AI-focused chips within China are anticipated to commence as early as July.

New Nvidia Budget Chip

Recent reporting by Reuters indicates Nvidia is also engineering a more affordable AI chip based on its Blackwell architecture, specifically for the Chinese market.

This new chip is projected to be priced between $6,500 and $8,000. This represents a cost reduction compared to the company’s H20 GPUs, which currently sell for $10,000 to $12,000 apiece.

Financial Impact of Restrictions

Nvidia disclosed a $4.5 billion charge during the first quarter, stemming from licensing stipulations that limited its sales of the H20 AI chip in China.

Furthermore, the company was unable to deliver an additional $2.5 billion worth of H20 chips during the same period due to these export restrictions.

Nvidia anticipates that these licensing requirements will negatively impact its revenue by approximately $8 billion in the second quarter.

• Key Players: Nvidia, AMD
• Regulation Focus: U.S. export restrictions on semiconductor technology
• Target Market: China
• Application: Artificial Intelligence (AI) workloads