The US government has implemented a number of export restrictions to hinder the development of China’s semiconductor industry, which has adversely affected the revenue of domestic semiconductor giants and other technology companies. In response to a drop in sales to China, US chipmaker Nvidia said it was supplying China with a new advanced chip, the A800, to replace the A100 graphics chip previously banned by the Commerce Department.
The US chip maker Nvidia confirmed on the 7th that it has provided a new advanced chip for the Chinese market, with the aim of continuing to provide services in the Chinese market without violating the US government’s restrictions on exporting chips to China .
Reuters quoted an Nvidia spokesperson as saying on the 8th that the Nvidia A800 chip was being produced in the third quarter of this year, mainly for the Chinese market, and its role was to replace the Nvidia A100 chip. Although both are graphics processing units (GPUs), the A800 meets US government standards for export control regulations, and the A100 model has been added to the export control list by the US Department of Commerce.
According to the report, the data transfer rate of the A800 chip is 400GB per second, which is lower than the 600GB per second of the A100, and the new US export control regulations limit the data transfer rate of the chip to 600GB the second. The Reuters report also said the high-end chips could cost thousands of dollars each.
“China is an important market for Nvidia, and it makes important business sense to reorganize products to avoid trade restrictions,” said Wayne Lin, an analyst at market research firm CCS Insight. China has an important position in Nvidia’s global market. According to the financial report data, in the past year, Nvidia earned US$7.111 billion in revenue in the China business area, accounting for 26.4% of the company’s revenue. Nvidia said that due to restrictions on the export of high-end chips, about $400 million in chip sales to China in the third fiscal quarter that ended in October this year could be affected.
The US Department of Commerce introduced the Export Control Regulations on October 7, banning the export of chips and advanced equipment to produce advanced chips to Chinese chipmakers. Nvidia declined to comment on whether it consulted with the US Department of Commerce on the new chip, the report said. A spokesman for the Department of Commerce also declined to comment.
“The US will pay a heavy price for China’s chip control.” The Financial Times reported on the 8th that other economies and business circles are trying to adjust their relations with China when the United States adopts chip restrictions on China. The US has spent billions of dollars setting up chip manufacturing plants in the country, but analysts estimate the US would need up to $1.2 trillion in upfront costs to build a full domestic supply chain at 2019 production levels , and more annual thereafter Invest. $125 billion. “The cost of disconnecting from the Chinese economy will be huge.”
“Voice of America” reported recently that semiconductor companies and other technology companies that consider China as the largest single market could face serious revenue losses in the United States. According to China Merchants Securities’ recent compilation of the financial reports of the major listed foreign semiconductor companies, the revenue performance of different manufacturers in the semiconductor industry chain was divided in the third quarter of this year, and many manufacturers expressed pessimism about the performance expectations for the industry semiconductors. fourth quarter. US chip companies such as Qualcomm, Intel, AMD, and Texas Instruments all expect a quarter-on-quarter drop in revenue in the fourth quarter. The companies mentioned above believe that cyclical headwinds in the global chip industry and the US chip ban on China are hitting demand for the global chip industry.
According to the “Voice of Deutsche Welle” report on the 8th, German Economy Minister Habeck said on the same day that China’s investment in the German semiconductor industry is facing a higher threshold, including the acquisition of the Egyptian German chip maker by Silex, which a wholly-owned subsidiary of China’s Sai Microelectronics in Sweden.Sherlock design. Elmos said earlier in the day that there was a “new situation” in relation to the acquisition and that it “could be banned.”
According to US media reports, the US is pressuring Japan and the Netherlands to cooperate with the US to stop the flow of advanced chip technology to China. In response, Chinese Foreign Ministry spokesman Zhao Lijian responded at a regular press conference on the 8th, saying that the US move was not made by an upright major country. Zhao Lijian said that the abuse of US national power and the economic coercion of allies that rely on technological advantages to maintain its hegemony and private interests are nothing new. The United States has politicized, instrumentalized and ideologically biased science and technology and economic and trade issues, and has maintained a “technological vacuum” and “technological disconnection” against other countries. Its intentions are well known. Trying to block other people’s way will only block your own way in the end.
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