OR Nvidia and Advanced Micro Devices recently secured Washington’s approval to reopen the lower -class AI chip sales in Chinaunder the controversial and legally disputed condition that they will grant 15% of the relevant revenue to the US government.
However, even with the support of the Trump team, the two companies face the problem that their Chinese customers are under pressure from Beijing to buy domestic chips. Beijing’s overall pressure affects AMD’s artificial intelligence accelerators, in addition to Nvidia, according to Bloomberg sources, though it is not clear whether a letter specifically referred to AMD’s Mi308 chip.
The shares of the Chinese design company Cambricon Technologies Chinese intelligence chip have risen to the 20% daily threshold after the news of China’s instructions, leading to other companies in the industry, such as Semiconductor Manufacturing International.
Beijing’s stance could limit Trump’s ability to convert his attitude to export control to a source of revenue for state funds, an agreement that highlighted his government’s trading approach to national security issues that were long considered non -negotiable.
However, Chinese companies may not be ready to turn to local semiconductor. “Domestic manufacturers’ chips are dramatically improved in quality, but it may not be so flexible for specific work loads in which China’s domestic artificial intelligence industry hopes to focus,” said Homin Lee, a senior macroeconomic strategic on Lombard Odier. Lee added that he is expecting a “strong” demand for chips that the Trump government allows NVIDIA and AMD to sell.
Beijing asked companies about this momentum in some of its letters, according to one of the people, asking questions such as why they buy NVIDIA H20 chips instead of local alternatives, if it is a necessary choice of domestic options and if they have identified safety problems in NVIDIA material. Alerts coincide with state media reports that call into question the security and reliability of H20 processors. Chinese regulators have expressed these concerns directly to Nvidia, which has repeatedly denied that its chips contain such vulnerabilities. Nvidia and Advanced Micro Devices Inc. They have recently secured Washington’s approval to reopen lower -class AI sales in China, with the controversial and legally questionable condition that they would give the US government 15% of the relevant revenue.
But even with the support of the Trump team, the two companies are facing the challenge that their Chinese customers are under the pressure of Beijing to buy domestic chips. Beijing’s overall pressure affects AI accelerators in addition to Nvidia, according to one of the informants, although it is not clear whether any of the letters specifically referred to AMD’s MI308 chip.
The shares of the Chinese design company Cambricon Technologies Corp. They rose to the 20% daily threshold after the news of China’s instructions, leading to other companies in the industry, such as Semiconductor Manufacturing International Corp.
Beijing’s stance could limit Trump’s ability to convert his attitude to export control to a source of revenue for state funds, an agreement that highlighted his government’s trading approach to national security issues that were long considered non -negotiable.
However, Chinese companies may not be ready to turn to local semiconductor. “Domestic manufacturers’ chips are dramatically improved in quality, but it may not be so flexible for specific work loads in which China’s domestic artificial intelligence industry hopes to focus,” said Homin Lee, a senior macroeconomic strategic on Lombard Odier. Lee added that he is expecting a “strong” demand for chips that the Trump government allows NVIDIA and AMD to sell.
According to one sources, Beijing asked companies about this momentum in some of its letters, asking questions such as why they buy NVIDIA H20 chips instead of local alternatives, if it is a necessary selection of domestic choices and if they have identified safety problems in NVIDIA material. Alerts coincide with state media reports that call into question the security and reliability of H20 processors. Chinese regulators have expressed these concerns directly to Nvidia, which has repeatedly denied that its chips contain such vulnerabilities.