Microchip Maker Nvidia Said It Would Be Hit With $ 5.5bn (£ 4.2bn) in Costs After The US Government Tightened Export to China.
The Chip Manufacturing Giant, What has been the Heart of the Artificial Intelligence (AI) Boom, Will Require License to Export ITS H20 AI Chip to China, which has begic One of Its Most.
The Rules Come Amid An Escalading Trade War Between the US and China, with Both Countries Introducing Steep Trade Tariffs on Each Other Covering Goods.
Nvidia Shares Plunged Almost 6% In After-Hours Trading.
Nvidia Announced On The US Government Had Told It Last Week That The H20 Chip Required to Be Sold To China, Including Hong Kong.
The Tech Giant Said Federal Officials Had Advised Them The Licence Requirement “Will Be Effect For The Indefinite Future”.
“The (Government) Indicated That The License Requirement Addresses The Covered Products May Be Used, or Diverted to SuperComputer in China,” Nvidia Said.
The Company Declined to Comment Further When Contacted by The BBC.
Marc Einstein From The Counterpoint Research Consultancy Said The $ 5.5bn hit Estimated by Nvidia Was In line with HIS Estates.
“While this is Certainly a Money, This is Something Nvidia Can Bear,” He said.
“But We Have Last Few Days and Weeks, This May Tactic. Ecosystem, “Mr Einstein Added.
Chips Remain A Batteground US-China Race for Tech Supremacyand US President Donald Trumpar Now Wants to TurboCharge and Delicate Manufacturing Process That has taken Take ReGions Decades to Perfect.
Nvidia’s AI Chips Have a Key Focus of US Export Controls. Founded in 1993, It was ORIGININALLY MAKING FOR THE TYPE Of Computer Chips That process Graphics, Particularly Computer Games.
Long Before the AI Revolution, It Started Adding Features to Its Chips That Its Help Machine Learning. It is now Seen a Key Company to watch to see the Fast AI-Powered Tech is Spreading Across The Business World.
The Company’s Value Took A Hit in January When it was reported that a rival Chinese AI app, Deepseek, Had been Built at the Cost of the Cost of Oher Chatbots.
At The Time, The US Was Considered to Be Caught Off Guard By Their Rival’s Technological Achievement.
Nvidia Said ITS $ 5.5bn Charges Would Be Associated With H20 Products For Inventory, Purchase Commitments and Related Reserves.
Rui Ma, Founder Of The Tech China Podcast, Said Expects The US and China AI Semiconductor Supply Chains to Be “Fully Decoupled” IF Restrictions Stay in Place.
She added: “It Doesn’t Make Any Chinese Customer To Be Dependent on US Chips” Specially Semi is An Oversupply Data Center in China.
