China faces new U.S. chip rules: 5 things to know

Local tech sector and chipmakers will adapt, but it will take time and money

20231101 Artificial Intelligence Biden

U.S. President Joe Biden prepares to sign an executive order on artificial intelligence at the White House on Oct. 30. © Reuters

CHENG TING-FANG, Nikkei Asia chief tech correspondent

TAIPEI -- Nvidia's business in China came under the spotlight last month when the U.S. singled out the AI chip developer with earlier-than-expected restrictions on exports of its most advanced products.

The chip developer, whose processors power ChatGPT and other artificial intelligence applications, has already tweaked its offerings for the Chinese market to abide by previous U.S. restrictions. Its A800 and H800 chips, for example, are downgraded versions of its A100 and H100 lines, but now those, too, fall within the scope of Washington's rules, threatening Nvidia's sales in one of its most lucrative markets.

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