NVIDIA has announced that new US government regulations will require a license for the exportation of H20 integrated circuits, an essential component for AI applications. This measure aims to mitigate risks associated with these advanced chips potentially being utilized in supercomputers in China. In addition to Mainland China, exports to Hong Kong, Macau, and certain embargoed nations will also require licensing. As a consequence of these changes, NVIDIA anticipates reporting approximately $5.5 billion in associated charges in its upcoming fiscal quarter, indicating significant financial implications for the company.
the US government now requires companies to obtain a license to export H20 integrated circuits and any other products that achieve the same performance benchmarks.
the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China.
NVIDIA now expects to report about $5.5 billion in charges related to inventory, purchase commitments and related reserves associated with the H20 circuits.
the H20 chips are currently the most advanced chips that can be sold to select international markets under present laws.
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