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Nvidia Says New Chips Will Comply With U.S. Export Controls On China

Yolowire - Wed Dec 6, 2023

Microchip and semiconductor giant %Nvidia (Nasdaq: NVDA) says that its new chips and %Semiconductors for the Chinese market will comply with U.S. laws and export controls.

Nvidia currently controls more than 90% of China's $7 billion U.S. %ArtificialIntelligence (A.I.) chip market and derives about 25% of its annual revenues from the Chinese market.

Analysts have expressed concerns that U.S. curbs on chip exports to China will hurt Nvidia financially and allow domestic Chinese chipmakers to gain market share.

Nvidia is actively trying to dispel those concerns, saying it is developing new less powerful A.I. chips that will comply with American laws.

“Nvidia has been working very closely with the U.S. government to create products that comply with its regulations," said Nvidia chief executive officer (CEO) Jensen Huang at a recent news conference.

Nvidia warned during its November earnings report that it expects a drop in fourth-quarter sales in China in the wake of the new U.S. export controls to China.

However, Nvidia also said that it is planning a big investment in Singapore and working with that country’s government to develop chip capacity.

Huang has praised Singapore for having a strong A.I. ecosystem and playing a major role as a data centre for many Asian markets.

Nvidia’s (Nasdaq: $NVDA) stock has risen 225% this year and is currently trading at $465.66 U.S. per share.

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