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After the US tightened its rules on the export of high-end AI chips to China by an American company, Nvidia reportedly delayed the launch of chips for the Chinese market. The company was recently said to be working to make changes to its GPUs as per upgraded restrictions so that it can sell chips in the Asian country. Now, a report has claimed that the launch has been delayed for the second time.
Citing two sources familiar with the matter, news agency Reuters reported that Nvidia has told customers in China that it is delaying the launch of a new AI chip until the first quarter of next year.
Nvidia’s three China-specific chips
Earlier this month, it was reported that Nvidia developed three new chips – called the HGX H20, the L20 and the L2 – meant for the Chinese market. The H20 is said to be the most powerful out of the three and none of them goes beyond the computing power threshold set by Washington.
According to the publication, the delayed chip is the H20 and it may complicate Nvidia’s efforts to preserve market share in China against local rivals like Huawei. The American chip maker was expected to launch the new products as early as November 16, chip industry newsletter SemiAnalysis claimed.
The H20 launch is reportedly pushed back until the first quarter of next year, and it may debut in February or March.
Why launch is pushed back
The sources told the publication that the H20 launch is being delayed due to issues server manufacturers are having in integrating the chip. Meanwhile, the L20 is not facing delays and is expected to launch according to its original schedule, and no information was available on the status of the L2 chip.
How H20 and other chips fare
When the US first introduced the curbs, Nvidia developed A800 and H800 AI chips to sell them in the Chinese market. But Washington further tightened the restrictions forcing the company to develop the H20, L20 and L2 chips.
These chips have considerably less computing power as compared to the previous ones. This means that buyers must purchase more chips to power their AI infrastructure. This also provided local companies like Huawei an opportunity to win orders that may have otherwise gone to Nvidia, which is a go-to vendor due to its software support.
Reportedly, Chinese internet giant Baidu placed a large order for Huawei AI chips this year. Furthermore, Xiaomi and Oppo are said to have already started designing their own semiconductors.
Citing two sources familiar with the matter, news agency Reuters reported that Nvidia has told customers in China that it is delaying the launch of a new AI chip until the first quarter of next year.
Nvidia’s three China-specific chips
Earlier this month, it was reported that Nvidia developed three new chips – called the HGX H20, the L20 and the L2 – meant for the Chinese market. The H20 is said to be the most powerful out of the three and none of them goes beyond the computing power threshold set by Washington.
According to the publication, the delayed chip is the H20 and it may complicate Nvidia’s efforts to preserve market share in China against local rivals like Huawei. The American chip maker was expected to launch the new products as early as November 16, chip industry newsletter SemiAnalysis claimed.
The H20 launch is reportedly pushed back until the first quarter of next year, and it may debut in February or March.
Why launch is pushed back
The sources told the publication that the H20 launch is being delayed due to issues server manufacturers are having in integrating the chip. Meanwhile, the L20 is not facing delays and is expected to launch according to its original schedule, and no information was available on the status of the L2 chip.
How H20 and other chips fare
When the US first introduced the curbs, Nvidia developed A800 and H800 AI chips to sell them in the Chinese market. But Washington further tightened the restrictions forcing the company to develop the H20, L20 and L2 chips.
These chips have considerably less computing power as compared to the previous ones. This means that buyers must purchase more chips to power their AI infrastructure. This also provided local companies like Huawei an opportunity to win orders that may have otherwise gone to Nvidia, which is a go-to vendor due to its software support.
Reportedly, Chinese internet giant Baidu placed a large order for Huawei AI chips this year. Furthermore, Xiaomi and Oppo are said to have already started designing their own semiconductors.
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