Nvidia China Breakthrough: Unveiling A Specialized Chip Despite US Export Controls

Nvidia, a globally renowned manufacturer of artificial intelligence (AI) chips, unveiled a specialized gaming chip on Dec 28 tailored exclusively for the Chinese market.

As reported by Reuters, this cutting-edge gaming chip from Nvidia promises Chinese clients a remarkable surge in performance, efficiency, and graphics powered by artificial intelligence.

Notably, Nvidia has meticulously crafted the new GeForce RTX 4090 D to adhere to the strict export controls mandated by the United States government. Nvidia emphasizes its extensive collaboration with U.S. authorities during the development of this product, ensuring full compliance with regulatory requirements.

Marking a significant milestone, Nvidia introduces its inaugural chip specifically tailored for the Chinese market, following President Joe Biden’s imposition of export controls on chips to China in Oct 2022. Since the initial enforcement, the U.S. government has repeatedly consistently heightened controls.

Restrictions currently prohibit the sale of Nvidia’s most potent chips, including the A800 and H800, as well as the cutting-edge gaming chip RTX 4090, in the Chinese market.

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According to a representative from Nvidia, the recently launched RTX 4090 D performs “5% less efficiently in gaming and creative tasks” and carries a price tag of 12,999 Chinese yuan ($1,842). Scheduled for release in Jan 2024, Nvidia’s new chip designed for the Chinese market is anticipated to be made available.

Nvidia heavily relies on China as a key market, constituting more than 90% of the country’s $7 billion AI chip market. Following China, the United States and Taiwan stand as Nvidia’s major markets, contributing approximately 13% collectively from all other countries.

Despite expressing concerns about the possible adverse effects of stringent export bans to China on long-term outcomes, Nvidia announced a historic revenue milestone of $18 billion in the third quarter of 2023. The company credited this remarkable success to the prominence of generative AI, underscoring its role as the primary driver of revenue.

Amidst the challenges posed by stringent controls from the U.S. government, China is actively seeking innovative approaches to navigate restrictions and expand its AI chip market.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.