'Nvidia Faces Stock Plunge Amid "China Export Ban" Claims... Clarifies "Local Development Allowed"'

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] NVIDIA, which was notified by the U.S. Biden administration to halt exports of cutting-edge semiconductors for artificial intelligence (AI) to China, has issued a clarification.

On the 1st (local time), NVIDIA stated, "The U.S. government will allow continued development of the H100 AI chip in China," and added, "Exports, re-exports, and domestic transfers necessary for the development of the H100 chip have also been approved."

This clarification came after the U.S. government’s notification to NVIDIA and AMD to stop exports of advanced AI semiconductors to China caused their stock prices to plunge. On that day, NVIDIA and AMD shares closed down 7.67% and 2.99%, respectively, on the New York Stock Exchange.

NVIDIA’s explanation suggests that while manufacturing AI chips in U.S. factories for export to China is prohibited, development and supply from factories in China remain permissible.

NVIDIA confirmed that AI graphics processing unit (GPU) semiconductors such as the A100 (code-named Ampere) and H100 (code-named Hopper) are subject to these regulations. The H100 is an upcoming model, while the A100 is a three-year-old older model. CNBC reported, "NVIDIA is expected to begin production of the H100 as early as this year," and "development is currently underway in China as well."

NVIDIA’s data center business, which includes the A100 and H100, is one of its fastest-growing segments, so the impact is expected to be unavoidable.

The day before, NVIDIA disclosed through the U.S. Securities and Exchange Commission (SEC) that the U.S. government notified new licensing regulations related to exports to China and Hong Kong on the 26th of last month.

This content was produced with the assistance of AI translation services.