Nvidia has said she expects to receive a $ 5.5 billion blow after the US withdrew her ability to export artificial chips in China, sending Silicon Valley Behemoth shares slipping into the trade after schedule.
The group said in a late regulatory appearance on Tuesday that Chip H20, which has adapted for the Chinese market to respect export controls that already prevent its most powerful chips in China, would now require a special license to sell to customers there.
Nvidia said the US had said that the measure was necessary to address the risk that H20 chips would be used in “a super computer in China”.
Chipmaker said it would take a fee of $ 5.5 billion in three months by April 27 regarding the H20 chips. Its shares fell 6 percent in the trading after Tuesday, while the future to follow the NASDAQ 100 technology -focused index fell more than 1 percent.
Washington’s collision at H20 chips is the latest example of how the US is using fees and other trade barriers to increase the pressure on Beijing. President Donald Trump has already increased tariffs on Chinese imports to 145 percent, although some consumer electronics have received a temporary return.
White House press secretary Karoline Leavitt on Tuesday asked China to cut a new trade agreement with the US, saying: “The ball is in China Court.”
The US Trade Department later confirmed on Tuesday that it was issuing new export licensing requirements for H20, as well as MI308 of AMD and equivalent chips.
“The Department of Trade is committed to acting according to the President’s directive to protect our national and economic security,” a spokesman said.
AMD is the nearest direct Nvidia competitor in the Dat Center Chip market. The company did not respond immediately to a comment request.
The US mass also points out how Nvidia, the designer of the chips in the heart of the Bum, who saw an uncontrolled growth over the past year and briefly became the most valuable company in the world, is exposed to geopolitical tensions between Washington and Beijing.
On Monday, the Trump administration launched a national security investigation that could lead to new semiconductors, as it does not immediately stop applying steep taxes on chips.
Restrictions come despite Nvidia chief executive Jensen Huang joining other technology leaders in the Trump Court’s search. Huang recently died with Trump at his Mar-a-Lago resort and met with the President at the White House in January.
Nvidia also said on Monday that it would spend up to half a trillion dollars on the US infrastructure over the next four years through partnerships with companies including Taiwan and Foxconn TSMC. Financial Times had reported for the first time in its investment plans.
The company introduced its H20 chips concentrated in China last year after the Biden administration imposed export controls on its chips.
They are less powerful than its main range of graphic processing units, or GPU, coveted by Microsoft, Openai, Google and Amazon.
Despite its reduced performance, H20 has still seen a strong demand in China. But Beijing has taken steps to encourage local technology companies to use home chips from companies such as Huawei, and can raise Nvidia products with new rules of energy efficiency.
Nvidia shares have decreased by about 16 percent since the beginning of the year, since Tuesday’s closure, as anxieties grow up for the growing weapons race between the US and China about the infrastructure it strengthens. They are also involved in a wider market of market caused by escalating trade war.
Bernstein analysts Tuesday said H20 made up about $ 12 billion of Nvidia $ 17 billion in China’s income, while lacking clarity at this stage if the licenses could be given, or if it reached a full “deletion” of the product line.
The participation of the newest nvidia chips has hit obstacles as successive US administrations have sought ways to control technology export.
Former President Joe Biden presented comprehensive limitations on Chip -related technology involving measures aimed at Nvidia for concerns that her chips would make it easier for China to modernize her army.
Ever since he took office, Trump has revealed a series of measures suggesting that he aims to continue the push to pressure China to make it more difficult for her army to benefit from American technology.
SH.BA is concerned that China will be the most successful building computers, which can be used for everything, from developing hypersonic weapons to nuclear weapons modeling, to help the people’s liberation army.
China has repeatedly accused the US of using national security tools, such as export controls, to stifle its economic development. The Chinese Embassy in Washington did not respond to a comment request.
A “Diffusion of AI” rule, introduced in the last days of the Biden administration, is set to enter into force in May, unless the Trump administration decides to issue it. Would impose much tougher controls where the most powerful chips of the US can be exported
Last week, the Republican senators wrote to the Secretary of Commerce Howard Lutnick asking the administration to remove the rule, which has faced reactions throughout the industry, including Nvidia.
