The United States issued the latest chip export restrictions on Tuesday. NVIDIA (US: NVDA) confirmed that three new high-end chips are prohibited from being sold to China, including NVIDIA's artificial intelligence chips A800 and H800 specially made for China. The top gaming chip L40S released by the factory in August will also be banned from being sold to China. NVIDIA's U.S. stock price fell below $430 on Tuesday, falling 4.7% throughout the day to close at $439.38.
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News of the United States tightening chip export restrictions has been brewing for a long time. Domestic media pointed out that many Chinese manufacturers have received the news in advance and stocked up in advance. Tencent, Baidu and other manufacturers also said that they currently have "ample stockpiles."
Nvidia disclosed to the U.S. Securities and Exchange Commission (SEC) that the product lines currently affected by the U.S. ban on China include: A100, A800, H100, H800, L40, L40S, and RTX4090.
The company also said the ban also affects processor systems using these chips, including DGX and HGX systems. Nvidia said the restrictions could harm its ability to complete new product development as planned.
NVIDIA has been banned from selling high-end chips such as A100 and H100 to China in 2022. At that time, NVIDIA designed the A800 and H800 with sub-level performance as alternatives for sale to China.
Nvidia has said earlier that as much as 25% of its data center chip revenue comes from China. Not only Nvidia's stock price was affected, Intel (Intel, US: INTC) and AMD (US: AMD) share prices fell more than 1% on Tuesday.
The U.S. Commerce Department extended comprehensive export controls first implemented in October last year. The latest restrictions reflect technological advances and make it more difficult for companies to find ways to circumvent restrictions.
U.S. Commerce Secretary Gina Raimondo said that the purpose of this update is to restrict China's access to advanced chips, because these products may promote breakthroughs in artificial intelligence and advanced computers, which are critical to China's military development and modernization.
The new rules also mention that if a company intends to sell AI chips to China or restricted areas, it must seek approval from the U.S. government to determine whether a license is required to sell related chip products to China.