Despite facing stern US export restrictions, NVIDIA is forecasting $12 billion in revenue from AI chip sales in China for this year. The data from SemiAnalysis – via Financial Times – indicates that the tech giant expects to move over 1 million units of its H20 chips in the Chinese market in 2024. The robust projection showcases the persistent demand for their GPUs and AI technology.
Impact of US Export Controls
Although the US has enacted stringent measures to restrict China’s access to high-end semiconductor technology to curb potential military applications, NVIDIA seems to be navigating these restrictions effectively. The company’s forecast suggests that its operations within China remain largely unaffected by these export controls.
China’s burgeoning artificial intelligence and machine learning sectors are boosting the need for advanced AI chips. NVIDIA’s hardware is essential in various fields such as autonomous driving, data centers, and high-performance computing. The demand highlights the company’s crucial role in these technological advancements and its ability to cope with regulatory hurdles.
How far ahead does that make the H100 then?
‘Dylan Patel, of SemiAnalysis, said that while the H20’s capabilities “on paper” were below that of Huawei’s 910B, in practice Nvidia’s chip was “a decent bit ahead”, thanks to superior memory performance’ https://t.co/C6802zs921 pic.twitter.com/KARo3XW0Rl— Joel Atkinson (@Joel_P_Atkinson) July 4, 2024
Southeast Asia analyst Joel Atkinson points out on X that the success of the H20 must means the H100 is also thriving. Nvidia’s H100 is already driving huge revenue for the company globally. The company has made concessions to maintain its position in the Chinese market. In order to comply with the stipulations outlined by the Biden Administration in October, Nvidia last December took action to ensure the RTX 4090D remained within the permissible total processing performance (TPP) for consumer graphics cards.
Huawei’s Competitive Position
Meanwhile, Financial Times reports that Huawei is also expected to sell around 550,000 units of its Ascend 910B chips in China within the same period. This reflects a competitive environment and burgeoning market for AI technologies, underscoring the role these chips play in enhancing China’s technological capabilities. Nvidia has recently reduced prices for its chips to enhance its position against Huawei.
NVIDIA’s revenue prediction underscores the intricate nature of the global semiconductor supply chain and the practical challenges of enforcing export restrictions. The development may bring increased scrutiny and potential revisions in international trade policies. As geopolitical factors continue to shape trade relations, NVIDIA’s dealings in China will be watched closely by both industry experts and policy makers.
Last Updated on November 7, 2024 3:41 pm CET
