US Government has imposed additional licensing requirements for exports to China and Country Groups D1, D4, and D5 of integrated circuits exceeding certain performance thresholds, including the A100, A800, H100, H800, L40, L40S, and RTX 4090, effective in 29 days.
- US Government is limiting China's access to high-performance computing chips, particularly for military applications.
- The new requirements will take effect in just 29 days, giving NVIDIA a relatively short window to address and adapt to these regulatory changes.
- The new rules consider performance thresholds, leading to the inclusion of custom A800 and H800 chips for China.
US Bans Exports of H800 and RTX 4090 GPUs to China
nVidia is facing a significant challenge as the US imposes licensing restrictions on certain graphics processors and accelerators, preventing their shipment to China. The company had invested in developing custom products based on Ampere and Hopper architectures to comply with previous export regulations. However, a new set of rules based on performance thresholds now threatens the shipment of these products.
Unlike previous restrictions focused on device connection speed, the new rules consider performance thresholds. This change led to the inclusion of custom A800 and H800 chips for China. Adding to the complexity, even the RTX 4090 gaming GPU falls under these new rules, as confirmed by NVIDIA in a filing with the Securities and Exchange Commission (SEC).
On October 17, 2023, the US Government announced the Interim Final Rule, “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections.” This rule amends ECCN 3A090 and 4A090, imposing additional licensing requirements for exports to China and Country Groups D1, D4, and D5. The rule covers integrated circuits exceeding certain performance thresholds, including the A100, A800, H100, H800, L40, L40S, and RTX 4090. It also includes systems incorporating these integrated circuits, such as NVIDIA DGX and HGX systems. Future NVIDIA integrated circuits, boards, or systems achieving specific processing performance and/or density are also subject to the licensing requirement.
These regulations aim to limit China’s access to high-performance computing chips, particularly for military applications. They also close loopholes that allowed foreign companies to purchase and export such chips to embargoed regions within China.
NVIDIA now faces a significant challenge, especially with its consumer-grade RTX 4090 series. Many Chinese companies are involved in packaging these cards, and numerous board partners exclusively operate in China.
It’s worth noting that these new requirements will take effect in just 29 days, giving NVIDIA a relatively short window to address and adapt to these regulatory changes.
Source: CNBC, NVIDIA SEC filing
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Background Information
About nVidia: NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.
Technology Explained
GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.
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