Nvidia issues a new warning about damages from Chinese export rules

Nvidia issues a new warning about damages from Chinese export rules

(Bloomberg) — Nvidia Corp. has acknowledged that the United States may impose stronger restrictions on the sale of chips to China, and warned that such a move would hurt American companies in the long run, echoing a widely held view among major chipmakers.

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Nvidia’s chief financial officer, Colette Kress, argued on a conference call with analysts late Wednesday that current restrictions on the sale of AI chips and high-end components have already had the desired effect. The company is currently prohibited from offering a high-end graphics processing unit, or GPU, in the country — although it does sell a less powerful version of the chip in China.

“In the long term, restrictions prohibiting the sale of our data center GPUs to China, if implemented, will result in the permanent loss of the opportunity for American industry to compete and lead in one of the largest markets in the world,” Chris said afterwards. Nvidia earnings announcement. The finance official said she was addressing reports of possible increased regulation “on our exports to China”.

Read more: How the US and its allies are trying to rein in Chinese technology

In the near term, she said, the stricter rules won’t negatively affect Nvidia’s finances.

“Given the strong demand for our products around the world, we do not expect the additional export restrictions on our data center GPUs, if approved, to have an immediate material impact on our financial results,” said Chris.

Chris’s boss, CEO Jensen Huang, recently joined peers from Intel Corp. and Qualcomm Inc. On a visit to Washington to demand a temporary halt to the escalation of export controls. The Biden administration says the restrictions are necessary to protect US national interests and prevent the Chinese military from advancing.

Bloomberg reports that more restrictions are being considered that would limit Nvidia’s ability to ship to the Asian country – its largest semiconductor market.

Read more: Huawei is building a secret network of chips, trade group warns

Nvidia, which is cashing in on the industry-wide race into AI computing, delivered its third consecutive sales forecast that beat Wall Street estimates on Wednesday. That sent shares up 6% in late trading. The company gets about two-thirds of its sales from outside the US, though it does not disclose revenue in China.

Meanwhile, the leading association of global chip companies is warning that Huawei Technologies is building an array of secret semiconductor manufacturing facilities across China – a shadow manufacturing network that would allow the blacklisted company to sidestep US sanctions and boost the country’s technological ambitions. – reported Bloomberg News.

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