Nvidia warns of product snags from tightening US chip rules

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Nvidia warns of product snags from tightening US chip rules
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The latest regulations, announced Tuesday, also limit exports to two Chinese artificial intelligence chip firms that are seen as rivals to US-based Nvidia.

Nvidia Corp suffered its worst stock decline in more than two months after the Biden administration stepped up efforts to keep advanced chips out of China, a campaign that includes restricting the company’s sale of processors designed specifically for the Chinese market.

The tighter controls will target Nvidia’s A800 and H800 chips, a senior US official said, which the American firm created for export to China — the world’s largest market for chips — after the Biden administration introduced its initial restrictions last October. As part of the new rules, the Biden administration added two Chinese AI chip startups — Shanghai Biren Intelligent Technology Co. and Moore Threads Intelligent Technology Beijing Co — and their subsidiaries to a trade restriction list. It mandates that companies obtain a US government license before shipping to those firms.

Washington relented in one key area following a year of public comment on the initial rule: The updated curbs broadly allow the sale of advanced commercial chips to Chinese companies for use in consumer products like smartphones, computers and electric vehicles, as Bloomberg reported earlier.

The new regulations will be applicable to a “limited number” of ASML fabs in China related to advanced semiconductor manufacturing, the firm said in a statement, without specifying which machines will be impacted.

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