U.S. Imposes Ban on Nvidia from Selling H20 Chips to China
(MENAFN) In a significant escalation of the technological rivalry between China and the United States, Washington has barred chip manufacturer Nvidia from selling its H20 chips to China for an "indefinite future," as disclosed in a filing by the company on Tuesday.
Nvidia anticipates incurring costs of up to $5.5 billion in its fiscal first quarter due to the newly imposed U.S. export restrictions on H20 chips designated for the Chinese market.
On April 9, the U.S. government informed Nvidia that an export license would be necessary for shipments of H20 integrated circuits, as well as other circuits with comparable memory or interconnect bandwidth, to China, Hong Kong, Macau, and select other regions. "The USG indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China," Nvidia stated.
The U.S. government confirmed on Monday that this licensing requirement will remain in place indefinitely.
Following this announcement, Nvidia’s stock experienced a decline of 6.3% in after-hours trading.
These new restrictions reflect ongoing U.S. efforts, spanning both the Biden and Trump administrations, to limit China's aspirations in artificial intelligence and semiconductor technology. Additionally, new tariffs on China, potentially reaching as high as 245%, are designed to restrict China's capacity to produce and acquire advanced chips.
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