U.S.-based Nvidia is facing a new trade barrier as export of certain chips to China are now prohibited.
Recent U.S. regulations have effectively banned the export of advanced microchips and equipment to China in an effort to deter China’s semiconductor industry and, in turn, the military.
In line with that, the U.S. Commerce Department added Nvidia’s data center chip A100 to the export control list, prohibiting its export to China. To solve this problem, the company has introduced the new Nvidia A800 chip.
“The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China. The A800 meets the U.S. Government’s clear test for reduced export control and cannot be programmed to exceed it,” an Nvidia spokesperson said in a statement to Reuters.
According to Nvidia, Chinese computer sellers are now advertising products with the new chip.
The chip represents the first reported effort by a U.S. semiconductor company to create advanced processors for China that conforms with the new U.S. trade rules.
Nvidia declined to comment on whether it consulted the Commerce Department about the new chip. However, it said that the export limitations could cost them hundreds of millions of dollars in revenue.
