Nvidia confirmed that it’s been told by the U.S. government to stop selling chips in China!
The company said it was applying for a license to continue some Chinese exports but doesn’t know whether the U.S. government will grant an exemption.
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U.S. Gov’s restricts chip sales to China!
Nvidia said that it’s been told by the U.S. Gov to stop selling chips in China@nvidia shares fell 6.5% in extended trading after the company said the Gov's restriction of chip sales in China. pic.twitter.com/c5alIFZrcb
— The_Journalbiz (@the_journalbiz) September 1, 2022
Nvidia shares fell 6.5% in extended trading after the company said the U.S. government is restricting sales in China.
In a filing with the SEC, Nvidia said the U.S. government told the company on Aug. 26, about a new license requirement for future exports to China, including Hong Kong, to reduce the risk that the products may be used by the Chinese military.
“The license requirement also includes any future Nvidia integrated circuit achieving both peak performance and chip-to-chip I/O performance equal to or greater than thresholds that are roughly equivalent to the A100, as well as any system that includes those circuits,” the filing said.
The company expects that it could lose $400 million in potential sales in China in the current quarter after previously forecasting revenue of $5.9 billion.
In recent years,
the U.S. government has applied increasing export restrictions to chips made with U.S. technology because of fears that Chinese companies could use them for military purposes or steal trade secrets.
Nvidia said it was applying for a license to continue some Chinese exports but doesn’t know whether the U.S. government will grant an exemption.
“We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren’t sufficient,” an Nvidia spokesperson told Bloomberg.
An AMD representative confirmed that it had also received new licensing requirements from the U.S. Department of Commerce which it believed applied to its MI250 circuit, which is intended for artificial intelligence