Nvidia sees ‘permanent loss’ of business opportunity if US tightens chip export controls on China

Nvidia says tighter export controls on advanced chips to China would threaten permanent lost opportunity for US industry

Further US restrictions could prohibit Nvidia from selling chips like its A800 GPU to China, used in AI applications

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Nvidia warns about impact from further US chip restrictions on China. Photo: Shutterstock

Published: 9:30pm, 24 Aug 2023

Nvidia said that the imposition of further US restrictions on the sale of advanced chips to China would result in the permanent loss of a business opportunity over the long term, although the industry giant expects little near-term impact on its financial performance.

Nvidia is already prohibited from exporting its high-end artificial intelligence-focused chips to China, the largest semiconductor market in the world. However, it has been selling less powerful and restriction-skirting chips, such as its A800 GPU, used for AI and data centre applications.

During an earnings call after releasing strong quarterly results on Thursday, Nvidia chief financial officer Colette Kress addressed reports that the US is considering imposing more sanctions on chip exports to China.

“Given the strength of demand for our products worldwide, we do not anticipate that additional export restrictions on our data centre graphics processing units (GPUs) would have an immediate material impact on our financial results,” said Kress.

“However, over the long-term, restrictions prohibiting the sale of our data centre GPUs to China, if implemented, will result in a permanent loss of an opportunity for the US industry to compete and lead in one of the world’s largest markets,” she added.

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