(JW Insights) Oct 18 -- The new restrictions on advanced artificial intelligence chips to China implemented by the United States will not affect Nvidia in the short term, according to the Chinese arm of the US chipmaker, reported Yicai Global on October 18.

“Given the global demand for our products, we don’t expect a near-term meaningful impact on our financial results,” Nvidia China told Yicai. “We comply with all regulations while working to provide products that support thousands of applications across many different industries.”

The Biden administration updated export control rules on AI chips on October 17, planning to ban companies from exporting advanced AI chips to China, which is expected to take effect in 30 days. Nvidia’s A800 and H800 chips were included in the export ban.

The restrictions will affect not only chipmakers such as Nvidia, Advanced Micro Devices, and Intel but also chip equipment manufacturers, including Applied Materials, Lam Research, and KLA.

The US first introduced export curbs on AI chips to China last September when it imposed bandwidth rate limits on AI chips exported to China. Nvidia’s A100 and H100 chips were among the affected products.

Although export restrictions in the US have exacerbated concerns about Nvidia chips entering the Chinese market, the company’s business has continued to grow.

Nvidia’s net profit soared 422 percent to $6.7 billion in the three months ended July 30 from a year earlier, according to the firm’s latest quarterly earnings report. Revenue jumped 171 percent to $13.5 billion. For the running quarter, Nvidia expects revenue of about $16 billion, according to the Yicai Global.

(Gao J/Yuan XY)