US licenses Nvidia to export chips to China, official says

By Karen Freifeld

A US official told Reuters on Friday, making a significant obstacle to AI Bellwether’s access to a key market, and began to license the trade department Nvidia to export H20 chips to China.

Last month, the US reversed April on the sale of the H20 chip to China. The company adapted the microprocessor to the Chinese market, especially in order to comply with the Biden Era AI chip export controls.

Chepmaker, Curbs will express $ 8 billion sales from the July quarter.

Nvidia CEO Jensen Huang Embers On Wednesday, two sources familiar with the issue told Reuters.

Nvidia spokesman rejected the comment. A White House spokesman did not respond immediately to the request.

In July, the company told the US government that the H20 Graphic Processing Unit continued to sell to China and is sure that it will soon get a license.

It is unclear which Nvidia is allowed to send H20s and how many licenses of the permissible shipments can be given.

In April, Nvidia announced in April that it expects a $ 5.5 billion accusation. In May, Nvidia said that the real first quarter fee due to H20 restrictions was less than expected because it could reuse some materials.

Financial Times first reported the developments on Friday.

Last month, Nvidia said that after expressing concerns about the potential security risks of its products in China’s H20 chip, it was not “backdoors” that will allow remote access or control.

Big market

Nvidia’s exports of other advanced AI chips that prohibit H20 are still restricted.

Sequential US administrations prevented Beijing’s artificial intelligence and defense development of China.

Although this has influenced US companies’ ability to fully address the demand for an increase in China, one of the world’s largest semiconductor markets in the world, it still continues to be an important income driving force for American chipset producers.

Huang said that the company’s leadership position could slip to China, where developers in China, with chips produced by Huawei technologies in China, without selling.

In May, Nvidia said that the H20 launched 4.6 billion dollars in the first quarter and that China made up 12.5% of the total income during the period.

(Karen Freifeld, Bengaluru Arsheeya Bajwa and San Francisco Max A. Cherney;