Export restrictions on products such as RTX 4090 to China will hit NVIDIA, Intel, etc.
Among the GPUs that are widely used not only in games but also in the AI and machine learning fields, there are restrictions on exports from the United States of NVIDIA's A100, H100, and RTX 4090, which have particularly high performance. As a result of this, the market share of Chinese manufacturers has increased, and the stock prices of existing manufacturers such as NVIDIA have fallen, causing confusion.
Commerce Strengthens Restrictions on Advanced Computing Semiconductors, Semiconductor Manufacturing Equipment, and Supercomputing Items to Countries of Concern.pdf
(PDF file)
US Govt Restricts Shipments of GeForce RTX 4090 to China, Other Countries | Tom's Hardware
https://www.tomshardware.com/news/us-govt-restricts-shipments-of-geforce-rtx-4090-to-china-other-countries
On October 17, 2023, the U.S. Department of Commerce's Bureau of Industry and Security imposed export restrictions on countries such as China, Saudi Arabia, and the United Arab Emirates, allowing certain products such as the RTX 4090, A100, and H100 to be exported without approval from the Department of Commerce. It was forbidden. This strengthens the regulations that the United States had previously imposed on China, and the A800 and H800, which were specially designed by NVIDIA to circumvent the previous regulations, will also be affected by the new regulations. It will be.
The US tightens restrictions on AI chip exports to China, making it difficult to export NVIDIA chips - GIGAZINE
This regulation was originally intended to prevent the expansion of military use of chips, but it also has a major impact on private companies in China that are trying to develop services using AI and machine learning. According to TechChrunch, many Chinese manufacturers are stocking up on A100 and H100, and Alibaba, Baidu, ByteDance, and Tencent have ordered A800 chips worth a total of $5 billion (about 750 billion yen).
China has developed capabilities comparable to Europe and America in the AI field, and the AI model ' Ernie 4.0 ' announced by China's Baidu is said to be catching up with OpenAI's GPT-4 in terms of performance. The combination of China's growing interest in AI and tightening export regulations has led to a movement in China to replace foreign-made equipment with domestically produced alternatives.
Almost half, or 47.25%, of machinery and equipment bids by Chinese foundries from January to August 2023 were won by local manufacturers, according to an analysis of 182 bids conducted by Huatai Securities, a Chinese securities firm. The percentage increased rapidly from July to August. Reuters said: 'This means that U.S. technology import restrictions are unlikely to be eased and may get worse, and that China's reliance on domestic technology will increase, as encouraged by Chinese President Xi Jinping. 'It reflects acceptance that this is the way forward and
NVIDIA is losing a large market in China, but a spokesperson said, ``Given the global demand for our products, we do not expect this to have a meaningful impact on our business results in the short term.'' 'We comply with all regulations while delivering products that support thousands of applications across many industries.'
Following the Commerce Department's announcement, NVIDIA's stock price reportedly
Semiconductor developer Arm points out that ``The U.S. government's goal of blocking access to semiconductors that can be used for military purposes is difficult to achieve through mere export restrictions.'' Since these systems involve not only the GPU but also various other components, the Department of Commerce says that regulating only a specific list of items will have little effect.
The latest regulations have also affected the lithography field, which is essential for semiconductor manufacturing, and while orders for ASML, which is strong in this field, have plummeted worldwide, sales in China have reached nearly half of the company's revenue. It seems that the results are showing that the Chinese market is responding well.
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