Nvidia's notable move in China

Nvidia's booth at a technology exhibition. Photo: Bloomberg .

Nvidia plans to ship a special, modified version of its AI chip to customers in China in the coming months, the company's latest move to maintain its presence in the country, Nikkei reported.

Nvidia’s new chip is expected to be a modified version of its Hopper line of chips, removing high-performance memory (HBM) – a key component that helps optimize computational tasks that require a lot of power. Instead, the chip uses GDDR7 memory, complying with US export restrictions on China.

Nvidia is also developing a Blackwell chip specifically designed for China, expected to launch later this year. Rumors say the chip will also use GDDR7 memory instead of HBM.

“While H20 products cannot be redeveloped and reused as rumored, we are still evaluating limited options for the China market,” an Nvidia spokesperson said.

According to Nikkei , the information was shared by a Nvidia representative after rumors that the company “no longer produces” the new Hopper chip. Responding to reporters in Taipei on May 17, CEO Jensen Huang emphasized that the Hopper chip “cannot be modified further”.

In 2024, Nvidia launched the H20 chip for China after the administration of former US President Joe Biden tightened AI chip exports. On April 9, the US government asked the company to apply for an H20 export license based on the new regulations.

Nvidia estimates that it will take a $5.5 billion operating cost in the first quarter of 2025 due to the new rules. According to internal filings, the company said any “integrated circuits and circuit boards with memory bandwidth, interconnect bandwidth, or a combination of both equal to H20” will be subject to U.S. regulations and require an export license.

Despite having to modify and remove HBM memory, analysts say Nvidia's chips for China are still competitive.

Recently, major internet companies such as ByteDance, Alibaba and Tencent have stockpiled billions of dollars worth of H20 chips before the new US ban takes effect in April.

As the US tightens its grip on AI chip exports, Huawei’s homegrown chips are becoming increasingly popular. Leading Chinese AI companies such as iFlytek and SenseTime are among the customers using Huawei’s Ascend platform.

CEO Jensen Huang introduces a new line of chips. Photo: Bloomberg .

Nvidia CEO Jensen Huang once emphasized that Huawei is “one of the most formidable companies in the world ” with the ability to enter markets where US companies are not present.

On May 13, the US government launched a new attack on Huawei, warning that using Huawei's AI chips anywhere, by anyone, risks violating regulations.

Meanwhile, the Financial Times reported that Nvidia is looking to build a research and development center in Shanghai. The goal is to assess the specific needs of Chinese customers, research technical factors to meet US regulations, and help Nvidia maintain its competitiveness in the country of a billion people.

"Huawei and other Chinese companies are protected from US competitors in a $50 billion market, and are using that to compete with US companies globally," an Nvidia spokesperson stressed.

Source: https://znews.vn/nvidia-khong-muon-roi-bo-trung-quoc-post1554102.html