US sanctions against exports of semiconductor products to China have had very little impact on the country’s chip industry; Because Chinese companies currently produce different types of microprocessors especially for the domestic market.
The United States has increasingly restricted Chinese companies’ access to advanced chipmaking technologies as part of its efforts to crack down on China’s domestic semiconductor industry. The sanctions bar US companies such as Nvidia and Advanced Micro Devices Inc from exporting advanced chips to China.
However, Nvidia and other tech giants that have faced tough US sanctions have managed to circumvent these restrictions by producing custom versions of their chips for the Chinese market.
to report GizmochinaNvidia’s custom chips designed specifically for the Chinese market are not very advanced and may take 10-30% more processing time than new ones. need artificial intelligence and this issue can double the cost of using them compared to flagship and advanced Nvidia chips. Although the green team has slowed down the speed of its chips for the Chinese market, the availability of these parts for Chinese companies is still a significant upgrade.
Nvidia currently supplies H800 chips to some of the biggest Chinese tech companies, including Alibaba, Tencent, and Baidu.
The most important US sanctions against China
The US has imposed two types of sanctions against the Chinese semiconductor industry. First, it places limits on the ability of chips to perform ultra-precise calculations in order to prevent the creation of a military supercomputer. The second limitation is the reduction in the speed of data transfer between chips, which will affect the functions related to artificial intelligence. For example, technologies like ChatGPTs rely on models that are too large to fit on a single chip, and thus distributing the processing load across thousands of chips is necessary in such projects.