Tamias Nvidia’s manufacturing giant said that it would be affected with $ 5.5 billion in costs after the Trump administration has tightened export rules to China.
According to the new rules published by the US government, Nvidia needed licenses to export her popular pop H20 AI in China.
The rules are involved in the midst of an increasing trade war between the United States and China, the two largest world economies introducing stiff tariffs on tit-for-tat on each other.
The semiconductor giant said that the US government told him last week that the H20 chip needed a license to be sold in China and Hong Kong. Nvidia said that US officials have informed that the license requirement for the H20 fleas is in force “for the indefinite future”.
“The (Government) said that the license requirement meets the risk that the products covered can be used or diverted to a supercomputer in China,” said Nvidia, as indicated by the Bbc.
The news comes one day after Nvidia has announced that it would spend hundreds of millions of dollars over the next four years to manufacture ia fleas in the United States.
Nvidia will hold a charge of 5.5 billion USD against its income during the current quarter due to the H20 inventory, purchase commitments and related reserves, which it will not be able to sell or fulfill the new government rule, said the company, according to the New York Times.
The Trump administration issues new export license requirements for fleas such as the H20 and MI308 of AMD, the US trade service said.
“The Commerce Department is determined to act on the president’s directive to protect our national and economic security,” said Benno Kass, spokesperson for the Commerce Department.
In 2022, the Biden administration hampered the export of the main Nvidia ia chips to China. In response, Nvidia has changed one of its large AI chips, the H100, and the resulting H20 chip has become a specific product for China.
China is the fourth region of Nvidia by sale, after the United States, Singapore and Taiwan. More than half of its sales were devoted to American companies during its last financial year.