The Peace Keeper

The Peace Keeper

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  • U.S. chip maker Nvidia Corp (NVDA, $146.02) is offering a new advanced chip, A800, in China that meets recent export control rules aimed at keeping cutting-edge technology out of China's hands, the company confirmed on Monday. The chip is the first reported effort by a U.S. semiconductor company to create advanced processors for China that follow new U.S. trade rules. Nvidia has said the export limitations could cost it hundreds of millions of dollars in revenue.

  • The company confirmed it the new chip was designed specifically to address the U.S. government’s concerns about possible Chinese military applications for its A100. Nvidia has previously said the US export limitations could cost it $400 million worth of chip sales to China in its fiscal third quarter. The news is viewed as a step in the right direction toward mitigating lost sales in China.

Why it matters

U.S. regulations set in early October effectively banned the export of advanced microchips and equipment to produce advanced chips by Chinese chipmakers, part of an effort to hobble China's semiconductor industry and in turn the military, which in turn affected multiple chip providers like Nvidia and AMD (AMD, $63.85).

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