Prohibiting the US government for the sale of H20 chips, introduced in April, forced Nvidia to cancel customer orders and cancel production capabilities.
Nvidia faces supply restrictions of the only AI chips that allow for exporting according to new US policies in China. Reuters reported this Sunday, July 20.
Despite the fact that this week the company announced plans to continue H20 chips sales in China, exporting still requires a license from the US government. The prohibition, introduced in April, forced the company to cancel customer orders and leave production quotes dedicated to TSMC capacities.
According to Nvidia Director General Jensen Juuang, the Taiwanese manufacturer has moved the H20 production lines to other chips for other customers. To continue making H20, it can now be needed for up to nine months.
Despite previous statements to increase the supply of H20, the resources The information They said Nvidia did not plan to restore the manufacture of these chips, though there was no official evidence or detail. The company itself refused comments on the situation.
At the same time, Nvidia announced the development of a new RTX Pro GPU graphic processor, which corresponds to current American export restrictions and specially focused on the Chinese market.
Earlier it was learned that Nvidia’s plan was to launch a new chip of artificial intelligence for China at a significant lower price than the H20 model banned in April. Making the mass of new products should start in June.
Loss of Nvidia due to penalties in the US
China remains a major market for Nvidia – it costs 13% of the company’s annual income. However, US export restrictions significantly influence the manufacturer’s position: Nvidia sharing in the Chinese market fell from 95% in 2022 to 50% today. The main competitor is Huawei with the Ascend 910B chip.
NVIDIA Director General Jensen Juuang said the old hopper architecture models (where H20 is based) will not be adapted to new export policies. As a result of the ban, the company wrote $ 5.5 billion from stocks and refused $ 15 billion potential sales.
Remember, Nvidia announced the start of the construction of the infrastructure for the manufacture of II-Supercompeters Nvidia that was completely in the United States.
Earlier it was reported that Nvidia reported on the record profit.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.