Technology
Nvidia May Be Forced To Relocate From China, In Aftermath Of US Restrictions On Exporting Advanced Semi-Conductor Equipment To The Country
Bhuvan Krishna
Oct 18, 2023, 12:53 PM | Updated 12:53 PM IST
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American multinational technology company Nvidia has voiced concerns about potential relocation of business operations from countries subject to United States' export restrictions.
This apprehension follows President Joe Biden's administration's recent expansion of limitations on the export of high-end semiconductor technology to China, encompassing specific chips tailored for the Chinese market by Nvidia.
This move led to a decline in US chip stocks, affecting not only Nvidia but also Advanced Micro Devices and Intel.
The primary objective behind these curbs is to prevent China's military from procuring advanced semiconductors or related equipment.
In response to the export restrictions, Nvidia disclosed in a filing that it would impede the sale of two high-end artificial intelligence chips, namely A800 and H800, which were specifically designed for the Chinese market.
Additionally, one of Nvidia's gaming chips also faced similar restrictions.
While other chip manufacturers are also were affected by these curbs, analysts anticipate that Nvidia will be most affected given that China constitutes about 25 per cent of its revenues from data centre chip sales.
Consequently, Nvidia's shares, typically regarded as high-performing assets, experienced a decline of up to 4.7 per cent following the announcement.
The expanded curbs, slated to take effect in a month, broaden the restrictions on advanced chips and chipmaking tools to include additional countries like Iran and Russia.
Notably, Chinese chip designers Moore Threads and Biren have also been added to the blacklist.
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Bhuvan Krishna is Staff Writer at Swarajya.
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