NVIDIA to Launch Three New Customized Chips for China Soon

'Due to Strengthened US Export Control Measures on China'

U.S. semiconductor company Nvidia plans to launch three China-exclusive semiconductor chips, according to major foreign media citing Chinese economic media Kechuangban Daily on the 9th. This is analyzed as a response to the U.S. semiconductor regulations against China announced last month.

Kechuangban Daily reported, citing sources, that the new chips are HGX H20, L20 PCIe, and L2 PCIe, and that Nvidia will make an announcement about them on the 16th. Nvidia is known to have declined to comment on the report.

After the U.S. announced additional export control measures last month expanding semiconductor regulations against China to include low-spec chips, Nvidia stated that exports of its China-customized chips A800 and H800, which were released in response to earlier export controls, would be blocked. These two chips are downgraded versions of the highest-performance A100 and H100 chips made for export to the Chinese market. The highest-performance gaming chip L40S, announced in August, is also expected to be similarly affected.

Currently, Nvidia holds more than 90% of the global artificial intelligence (AI) graphics processing unit (GPU) market.

The export controls announced last month focus on tightening existing regulations and are interpreted as measures targeting Nvidia. There are concerns that these U.S. regulations could instead create opportunities for Chinese companies, similar to how Huawei expanded in the Chinese market despite restrictions.

Chinese companies have already begun seeking alternatives to Nvidia. According to major foreign media on the 7th, Baidu, China's largest search company, ordered 1,600 AI semiconductors from Huawei, of which 1,000 have already been delivered.