Home Nvidia AI chip launch in China delayed by US export laws – reports

Nvidia AI chip launch in China delayed by US export laws – reports

Nvidia will reportedly delay the release of a new artificial intelligence (AI) chip in China until early 2024 because of US export regulations.

Reuters reports the American chipmaker is experiencing a major setback with its H20 chip, the most powerful in a trio of chips specifically developed for the Chinese market.  The world’s second most populous nation accounts for approximately 20-25% of Nvidia’s revenue in its data center business. At the end of October, the $1.2 trillion company expressed confidence the new export controls would not significantly impact them in the short term. Nvidia had planned to unveil its latest products around November 16.

Still, according to insiders who chose to remain anonymous, the release has been rescheduled for the first quarter of the upcoming year, possibly occurring in February or March. Despite the setback, Nvidia has not provided official comments on the matter.

Nvidia stock prices falls after the China news

Nvidia’s stock price fell by more than 1% early Friday EST, as markets reacted to the delay in China, but the Californian firm remains a top NASDAQ performer for the year so far – up 237% in 2023.

Nvidia’s strategic focus on new AI chips is driven by the need to maintain market share in China following restrictions on exporting products imposed by Washington. The company aims to counter challenges from competitors like Huawei, which has gained traction in the absence of Nvidia’s A800 and H800 AI chips, restricted by tightened U.S. export rules.

Alongside the H20, Nvidia is developing two other chips – the L20 and L2. The good news for investors is the L20 is believed to be on track with its original schedule and is unaffected by delays. However, no information was available regarding the status of the L2 chip.

Featured Image: Manuel Joseph via Pexels.

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Sam Shedden
Executive Editor

Sam Shedden is an experienced journalist and editor with over a decade in online news. A seasoned technology writer and content strategist, he has contributed to many UK regional and national publications including The Scotsman, inews.co.uk, nationalworld.com, Edinburgh Evening News, The Daily Record and more. Sam has written and edited content for audiences whose interests include media, technology, AI, start-ups and innovation. He's also produced and set-up email newsletters in numerous specialist topics in previous roles and his work on newsletters saw him nominated as Newsletter Hero Of The Year at the UK's Publisher Newsletter Awards 2023. He has worked…

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