Nvidia-Reliant Chinese Automakers Safe From Exempted From US SoC Ban? Here's Why Their Chipset Usage is Safe

Nvidia-reliant Chinese automakers are expected to be safe from the U.S. SoC sanctions that prevent the giant chipset maker from shipping to the Asian country.

Nvidia previously confirmed that the American government imposed new export restrictions on its advanced AI-powered SoCs.

Because of this, experts estimated that the largest artificial intelligence chipmaker might lose around $400 million in Chinese sales.

Aside from China, Nvidia also can't export its popular chipsets to Russia, as reported by TechCrunch.

Nvidia-Reliant Chinese Automakers Safe From US Chip Ban?

Although the U.S. government's chip restrictions are quite serious, Chinese automakers are exempted from the SoC ban.

Also Read: US Bans NVIDIA From Exporting AI Chips to China and Russia

This means that they can still receive Nvidia's chipsets, as well as export vehicles integrated with the chipmaker's SoCs.

According to CNBC, Chinese automakers are safe from the U.S. SoC sanctions since their products are not included in the sanctioned items.

"There shouldn't be any restrictions on Xavier and Orin, and Xpeng, Nio, and others would continue to ship with those chips," said Automobility co-founder Bevin Jacob.

However, he warned that this situation might soon happen if "close scrutiny" happens.

Reason Behind US Chip Sanctions

The U.S. government explained that the latest chipset sanctions are expected to reduce the risk of supporting the Chinese military.

This means that American officials want to ensure that the Chinese defense department can't take advantage of Nvidia's AI-powered SoCs to benefit their military activities.

Of course, Chinese officials are not happy about the sudden chip ban. They explained that the U.S. government should treat all companies across the globe fairly.

The Chinese government further stated that the United States must focus on ensuring the stability of the world economy.

In other stories, the new Nvidia noise removal feature was previously launched for the issue and Elgato software.

On the other hand, the features of the new Nvidia GeForce RTX 4070 Ti were leaked.

For more news updates about Nvidia and the ongoing U.S. SoC sanctions, always keep your tabs open here at TechTimes.

This article is owned by TechTimes

Written by: Griffin Davis