An Nvidia (NASDAQ: NVDA) told Seeking Alpha on Friday that the company did not expect new export controls imposed on U.S. companies sending microchips to Chinese companies to have a “significant impact” on its business.
“These regulations impose industry-wide controls on processors meeting certain thresholds that we were already subject to,” the spokesperson said via email. “We do not expect the new controls, including restrictions on sales of very dense systems, to have a significant impact on our business.”
On Friday, the Biden administration put additional controls on China’s semiconductor industry, requiring companies to obtain a Commerce Department license to export semiconductors and chipmaking equipment to Chinese companies.
Late last month, Nvidia (NVDA) chief executive Jensen Huang said there was “big space” for the company in the Chinese market, even as the White House imposed restrictions on it and Advanced Micro Devices (AMD) to sell some chips to Russia and China, citing national security concerns.
“The vast majority of our customers are not affected by the specification,” Huang said at a press conference in September, adding that the restrictions would still allow Nvidia (NVDA) to have a “large space” on the Chinese market.
Huang also noted that a “large number of products” in the United States and China will be architecturally compatible, respect the limits and will not require a license.
Nvidia (NVDA) and Advanced Micro Devices (AMD) recently confirmed that the US government has restricted the sale of some of their products to China and Russia, with analysts noting the news could pose a “structural risk” to the market. whole sector.
In an 8-K filing, Nvidia (NVDA) said the US government “has indicated that the new licensing requirement will address the risk that covered products may be used or diverted to a ‘military end use’ or ‘end user’. military “. ‘ in China and Russia.”
Nvidia (NVDA) said the impact could be worth up to $400 million in revenue, while AMD (AMD) said it saw no material impact.
In a separate 8-K filing, however, Nvidia (NVDA) said the U.S. government allowed exports of its H100 ICs and allowed A100 and H100 order fulfillment and logistics through Nvidia’s facilities. Hong Kong of the company until September 1, 2023.
Earlier this week, Nvidia (NVDA) announced that it would cease all operations in Russia and give its employees in the country the option to work from other countries if they wish.