Nvidia Chips for China, Possibly Affected by Washington's Projected Export Restrictions

Washington is reportedly looking to expand its chip export restriction on China, possibly affecting tech giant Nvidia's China-tailored chip.  

As per SCMP, Industry sources have claimed that Nvidia has not yet decided on the delivery schedule for its newest chip, which is intended to meet export restrictions for China in Washington. Sanctions could escalate and affect the company's roll-out plans.

According to two sources, including one person familiar with the situation, the chip giant from California has created a stripped-down version of its powerful Blackwell B200 graphics processing unit (GPU) called the B20 specifically for Chinese customers.

Nvidia initially intended to begin delivering the new chip in the fourth quarter, but this schedule may no longer be feasible due to new worries that an increase in export controls under consideration by Washington could impact the product, as stated by one source and confirmed by another individual knowledgeable about the situation.

People say that even though the B20 has reduced computing power, it will make up for it by increasing interconnection bandwidth to combine multiple cards.

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Restrictions on Nvidia

Nvidia, whose third-largest market in the financial year ending January 28 was China, is one of the top tech companies facing the impact of stricter US sanctions on China's access to advanced semiconductors.

In August 2022, China banned Nvidia from distributing its A100 and H100 GPUs, which are highly sought-after for AI model training and implementation. It later adopted the chips to produce the A800 and H800 in order to circumvent the limitations, but these models were also prohibited from being sent to China last October.

Last year, Gina Raimondo, the US Secretary of Commerce, cautioned chip companies against attempting to circumvent export regulations, stating that she would regulate the new chips immediately.

Europe on US and China's Conflict

This new development further confirms the escalating trade conflict between the US and China. A recent study shows that certain European tech firms, especially those in Germany, are unwilling to get involved in the increasing trade tensions between the US and China regarding semiconductor chips, an essential element in today's electronic devices.

The study conducted by King's College London and the University of Sussex explains why German companies, especially in the automotive and semiconductor industries, were reluctant to support American attempts to isolate China's semiconductor sector in the trade conflict referred to as the "chip war."

The research emphasized the complex relationships between German car manufacturers like Mercedes-Benz, BMW, and Volkswagen and the semiconductor producers in the country. Researchers claimed that these links clarify why Germany is hesitant to follow US requests to cut off semiconductor supply chains with China.

Even with pressure from the US, German companies continued to be closely connected to Chinese markets and suppliers, impacting their strategic choices in the worldwide technology industry.

Dr. Joseph Baines from the Department of European and International Studies at King's College London highlighted that governmental policies are the main driving force behind geopolitical conflict, but corporate interests also significantly influence the results.

He emphasized how important these interests are in preventing US efforts to isolate China's semiconductor sector. Dr. Steven Rolf from the University of Sussex Business School emphasized the significant economic implications.

He observed that China's spending on importing semiconductors surpasses that on oil, possibly explaining why German companies are ignoring appeals to disconnect from China. 

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