Nvidia Launches New Gaming Chip for Chinese Market
U.S.-based chipmaker Nvidia has announced the launch of a new gaming chip tailored explicitly for Chinese consumers in a move designed to comply with stringent export controls laid by the U.S. government. The chip, named GeForce RTX 4090 D, is described as a “quantum leap in performance” with enhanced artificial intelligence capabilities. According to a company spokesperson, the chip has been developed to fully comply with U.S. government export controls.
GeForce RTX 4090 D: Nvidia’s Compliance with U.S. Export Controls
The new gaming chip by Nvidia will be available to consumers in mainland China in January. It is priced at 12,999 yuan ($1,842) and is a step down from Nvidia’s RTX 4090 chip, which is currently unavailable to Chinese consumers. The new chip for the Chinese market is slightly slower in gaming and creating, but it still manages to meet the stringent export rules imposed by the U.S. government. Nvidia has extensively engaged with the U.S. government during the development of this product.
How the U.S.-China Export Ban is Impacting Nvidia’s Chip Sales
In mid-2023, the U.S. Department of Commerce banned the sale of advanced AI chips to China on national security concerns. This export embargo has impacted Nvidia’s chip sales in China, where it holds a staggering 90% share of the chip market. However, Nvidia claims that its recent impressive figures are primarily driven by a global AI boon, with the decline in block reward mining having little impact on the company’s metrics.
Nvidia Develops New Chips for Chinese Market Amid Export Ban
To circumnavigate the U.S. authorities’ export ban, Nvidia has been exploring various ways, including developing a new range of chips. It plans to roll out two new tailor-made chips for the Chinese market in the coming months. According to U.S. Commerce Secretary Gina Raimondo, Nvidia can and should sell AI chips to China for commercial applications. However, the export of the most sophisticated and highest-processing power AI chips, capable of training frontier models, is not allowed.
China’s Response to Export Ban: Building Semiconductor Factory and AI Advances
In response to the U.S. export ban, Chinese authorities have imposed export restrictions on raw materials for chip manufacturing. Additionally, the country has unveiled plans to build a semiconductor factory and develop a particle accelerator with advanced technologies to replace Nvidia’s chips. Despite the challenges in AI chips, China’s generative AI market is thriving, with several tech companies launching their offerings to consumers under the watchful eye of regulators.
In conclusion, Nvidia’s launch of a new gaming chip tailored specifically for the Chinese market is a result of the stringent export controls imposed by the U.S. government. While the chip may be slightly slower than its predecessor, it still meets the export rules and allows Nvidia to continue its presence in the Chinese chip market. The U.S.-China export ban has had an impact on Nvidia’s chip sales, prompting the company’s development of new chips to cater to the Chinese market. At the same time, China is responding to the export ban by building its own semiconductor factory and advancing its generative AI market.
Analyst comment
Positive.
As an analyst, the launch of Nvidia’s new gaming chip tailored for the Chinese market will allow the company to continue its presence in the Chinese chip market. Despite being slightly slower, the chip meets export rules and complies with U.S. government controls. The U.S.-China export ban has impacted Nvidia’s chip sales, prompting the development of new chips for the Chinese market. Meanwhile, China’s response to the ban includes building its own semiconductor factory and advancing its generative AI market.
