With China still shackled by the stricter US chip curbs, Nvidia has warned that such implementation will hurt American chipmakers in the long run.
The California-based hardware company believes that this could likely risk a "permanent loss" for the part of the semiconductor firms in the country.
AI China Chip Export Curbs Could Impact US Chipmakers
According to an initial report by CNBC, Nvidia has issued a new warning that the ongoing AI chip export curbs will likely leave a lasting impact on the American chip-making industry.
Early reports claimed that the Biden administration would implement another set of changes in line with the AI-related chip restrictions. This could likely affect Nvidia's business model.
As we know, Nvidia has started selling the H100 and A100 GPUs to China in 2022. These products have passed the US export control compliance.
"We believe the current regulation is achieving the intended results. Given the strength of demand for our products worldwide, we do not anticipate that additional export restrictions on our data center GPUs, if adopted, would have an immediate material impact to our financial results," Nvidia CFO Colette Kress said during the company's earnings call on Wednesday, Aug. 23.
Kress added that Washington's move to prohibit the selling of graphics processing units to China could result in a permanent loss of opportunity for the US industry over the long term.
Nvidia's Sales Grew to 170% in the Current Quarter
Although the US chip curbs are limiting China's capability to maximize AI using the hardware, Nvidia managed to exceed Wall Street's expectations in the current quarter.
According to Verdict, Nvidia still saw a massive demand for its semiconductors suited for AI processes.
For the fiscal third-quarter revenue, the Jensen Huang-led business collected around $16 billion, accounting for 170% growth from the 2022 record.
Nvidia will likely continue to supply China with less powerful versions of their GPUs since the AI demand is skyrocketing at this moment.
Related Article: US Fears AI Chips Could Slip into the Hands of China Following Nvidia Export Restrictions
The US Fears China Will Use Chips For Military Purposes
The export restrictions on the semiconductors are only a part of a bigger tech battle between the two giants. Washington believes that if China gets access to the powerful chips, it could potentially use them for military means.
GlobalData writes in its report that China's consumption of semiconductors only accounts for 40% worldwide. However, only 12% are considered self-sufficient, according to the data.
While Nvidia does not anticipate that the Biden admin will launch additional export restrictions anytime soon, Huang believes that there's a need to pause the implementation.
A previous report from Bloomberg said that the US government is only doing its best to protect the country and denounce China's motive to upgrade its military system.
