NVIDIA Offers Advanced, But Slower Chip For China

US chip maker Nvidia Corp. is offering a new advanced chip in China that meets recent export control rules aimed at keeping cutting-edge technology out of China's hands, the company confirmed, Jane Lanhee Lee, Josh Horwitz, and Karen Freifeld reported for Reuters.

Photo Insert: Nvidia headquarters

The chip, called the A800, represents the first reported effort by a US semiconductor firm to create advanced processors for China that follow new US trade rules. Nvidia has said the export limitations could cost it hundreds of millions of dollars in revenue.

US regulations set in early October effectively banned the export of advanced microchips and equipment to produce advanced chips by Chinese chipmakers, part of an effort to hobble China's semiconductor industry and in turn the military.

In late August, Nvidia and Advanced Micro Devices Inc. both said that their advanced chips, including Nvidia's data center chip A100, were added to the export control list by the US Commerce Department.

The Nvidia A800 can be used in place of the A100 and both are GPUs, or graphics processing units. Such advanced chips cost thousands of dollars each.

"The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China. The A800 meets the US Government’s clear test for reduced export control and cannot be programmed to exceed it," an Nvidia spokesperson said.

The firm added that about $400 million worth of chip sales to China could be affected in its fiscal third quarter due to the limits on high-end chips. A replacement chip could help lessen the financial blow. Nvidia will report quarterly results on Nov. 16.

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