Nvidia sees permanent loss of opportunities from China export curbs

SAN FRANCISCO - Nvidia’s financial chief said restrictions on exports of artificial intelligence (AI) chips to China “would result in a permanent loss of opportunities for the US industry” though the company expected no immediate material impact.

US officials are

considering tightening an export control rule

designed to slow the flow of AI chips to China by clamping down on the amount of computing power the chips can have, said two people in the know.

Last October, Washington

issued a sweeping set of rules

aimed at stalling China’s chip industry while the United States pours billions of dollars in subsidies into its own. An update to those rules may come by late July, the two people said.

“Over the long term, restrictions prohibiting the sale of our data centre graphic processing units to China, if implemented, would result in a permanent loss of opportunities for the US industry to compete and lead in one of the world’s largest markets and impact on our future business and financial results,” Nvidia’s chief financial officer Colette Kress said.

Shares of the company closed down 1.8 per cent on Wednesday. So far in 2023, they have nearly tripled thanks to booming demand for AI chips.

Nvidia last September said US officials had asked the company to stop exporting two top computing chips for AI work to China.

Nvidia then started offering a new advanced chip called the A800 in China to meet export control rules.

The new curbs being considered by the US would ban sale of even those chips designed specifically for Chinese customers, without a special US export licence, the Wall Street Journal has reported.

Other US chipmakers have also been caught up in the US-China technology spat.

China’s cyberspace regulator in May

failed products from memory chipmaker Micron Technology

in a security review and barred purchases by operators of key infrastructure.

Micron, which reported on Wednesday that quarterly revenue grew at a quicker clip than expected, has said it expects the ban to impact a low double-digit percentage of its total revenue. REUTERS