Fews weeks after the US announced cancelling some licences that allow companies to send products, including chips to Chinese company, Huawei Technologies, in its latest efforts to curb China’s tech power, American multinational corporation, Nvidia, has reportedly dropped the price of its most advanced AI processors.
According to Reuters, Nvidia’s most recent AI processor for the Chinese market is off to a slow start due to oversupply, which has lowered pricing relative to a rival chip from Huawei.
This price reduction underscores Nvidia’s difficulties in China as a result of US sanctions on the sale of AI chips and growing competition, casting doubt on the company’s prospects in a market that generated 17% of its revenue in its fiscal year 2024.
The state-owned Semiconductor Manufacturing International Corp., which is subject to trade restrictions on sophisticated chipmaking equipment, is purportedly the manufacturer of the chips used by the Chinese enterprise.
In October 2023, Nvidia revised its high-end product lineup for China in response to fresh restrictions imposed by the US on AI technology.
The chip manufacturer had earlier stated that it had not been granted permission to export restricted goods to China, but it had begun sending substitutes in modest quantities.
Following US trade export regulations, the US chip manufacturer introduced three AI chips to the Chinese market last year. It indicates that while these processors are adequate, there are times when they lack both efficiency and innovation.
The H20, allegedly the most expensive Nvidia product available in China, is one of the three CPUs. Supply chain sources claim that these chipsets are widely available, even though this indicates a lacklustre consumer market for them.
We earlier reported that Yoon Suk Yeol, the president of South Korea, has launched a KRW26 trillion ($19.1 billion) support package that includes financial, infrastructure, R&D, and support for small and medium-sized enterprises (SMEs).
