June 28 (Reuters) – Nvidia (NVDA.O)’s finance chief said restricting exports of artificial intelligence chips to China “would result in a permanent loss of opportunity for U.S. industry,” but said the company had immediate serious consequences. He said he expected no impact.
U.S. officials are considering tightening export control rules aimed at slowing the flow of AI chips to China by limiting the chips’ computing power, according to two people familiar with the matter.
Last October, the U.S. government issued a comprehensive set of rules aimed at slowing China’s semiconductor industry down while the United States poured billions of dollars into subsidizing its own semiconductor industry. An update to those rules could come by late July, the two said.
“Long-term, the US industry’s opportunity to compete and lead in one of the world’s largest markets will be permanently lost if a regulation banning the sale of our data center graphics processing equipment to China comes into effect. , will have an impact on our nation’s future “business and financial results,” said Colette Kress, Nvidia’s chief financial officer.
The company’s shares closed down 1.8% on Wednesday. That number has nearly tripled so far this year, thanks to a surge in demand for AI chips.
Nvidia announced in September that U.S. authorities had asked the company to stop exporting two of its top AI-related computing chips to China. Nvidia then started offering a new advanced chip called the A800 in China to meet export control regulations.
New regulations under consideration by the United States will bar the sale of even chips specifically designed for Chinese customers without a special U.S. export license, The Wall Street Journal reports. .
Other U.S. chip makers are also embroiled in the U.S.-China technology dispute.
China’s cyberspace regulator last month failed security reviews on products from memory chip maker Micron Technology (MU.O), barring major infrastructure operators from purchasing them.
Micron reported Wednesday that its quarterly revenue grew at a faster pace than expected, but said it expects the ban’s impact on total revenue to be in the low double digits.
Reported by Chavi Mehta in Bangalore and Sayantani Ghosh in San Francisco.Editing: Krishna Chandra Elli and David Gregorio
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