Nvidia to Commence Mass Manufacturing of Chips Adherent to Chinese Markets

Nvidia plans to start mass production of Chinese-made artificial intelligence (AI) chips to meet US export regulations in the second quarter of 2024, two sources familiar with the matter said on January 8. This is the most powerful of the three focused on China. Chips developed by Nvidia to comply with the restrictions announced in October. It was originally scheduled to launch in November last year, but those plans were delayed, with sources telling Reuters at the time that the delay was due to issues with the manufacturer and clear installation.

One person said initial production volumes will be limited as Nvidia plans to fulfill orders from large customers. Both cannot be identified because the information is confidential. Nvidia declined to comment.

Citing sources, Reuters previously reported that Chinese companies are reluctant to buy diluted H20 due to concerns that the United States may also tighten regulations and test alternative forms of fuel. Last year, search engine leader Baidu split from Nvidia and outsourced artificial intelligence chips to Huawei Technologies, Reuters reported. In addition to the

H20, Nvidia plans two other chips that will meet the new restrictions: The L20 and the L2. The chipmaker has yet to announce sales for any of the three products.

It released a modified version of its high-end gaming chip in late December to comply with the new regulations. Nvidia is betting on the chips to help preserve its market share in the country after tightening US export restrictions barred it from shipping products, including its advanced A800 and H800 AI chips.