US Government Orders Nvidia to Halt AI Chip Shipments to China

US Government Orders Nvidia to Halt AI Chip Shipments to China

TEHRAN (Tasnim) – The US government has instructed semiconductor designer Nvidia to cease the shipment of certain high-end artificial intelligence chips to China, according to a company filing disclosed on Tuesday.

 The US Department of Commerce has introduced new semiconductor export restrictions, which include stricter definitions for advanced AI chips and additional licensing requirements as preventive measures.

These curbs were set to become effective 30 days after October 17, when the administration of US President Joe Biden unveiled measures to prevent countries, including China, Iran, and Russia, from acquiring advanced AI chips created by US firms, according to RT.

However, Nvidia revealed that on Monday, it received notification from Washington that the export restrictions should take effect immediately for all its products exceeding the updated processor performance cap and designed or marketed for data centers. The chipmaker did not specify why US authorities expedited the timing but stated that it did not anticipate a significant short-term impact on its earnings due to this action.

Under the recent export ban, Nvidia must discontinue shipments of modified advanced AI chips A800 and H800 without obtaining a license. Both chips were developed for the Chinese market as substitutes for the A100 and H100 AI processors, which came under previous US restrictions in October 2022.

This embargo also affects two other major US chip manufacturers, Advanced Micro Devices (AMD) and Intel, both of which provide AI semiconductors to China. Intel began exporting its Gaudi 2 chips to China in July and has stated that it is "reviewing the regulations and assessing the potential impact."

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