Nvidia's High-End Chips Ended Up In Chinese Hands Despite US Ban: Here's How Beijing Scored Them
Portfolio Pulse from Benzinga Neuro
Chinese entities have acquired high-end NVIDIA chips despite a U.S. ban, using third-party vendors and embedding them in servers from Super Micro Computer, Dell Technologies, and Gigabyte Technology. The chips were obtained for servers between Nov. 20 and Feb. 28, after the U.S. expanded its embargo on Nov. 17. Nvidia and server makers claim compliance with export controls, while the situation underscores the challenges of enforcing U.S. chip-export restrictions to China.
April 23, 2024 | 5:01 am
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NEGATIVE IMPACT
Broadcom, heavily reliant on China for revenue, navigates the complexities of U.S. chip export bans.
Broadcom's significant revenue dependence on China exposes it to risks from the U.S. semiconductor export bans, potentially leading to a negative short-term impact.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Intel, with significant revenue from China, faces challenges amid U.S. semiconductor export restrictions.
Intel's reliance on China for a substantial portion of its revenue could be negatively impacted by the U.S.'s stringent semiconductor export restrictions, suggesting a potential downside in the short term.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Qualcomm, with major revenue from China, faces headwinds due to U.S. semiconductor export restrictions.
Qualcomm's significant revenue from China could be adversely affected by the U.S.'s semiconductor export restrictions, indicating a potential negative short-term impact.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 50
NEUTRAL IMPACT
Dell Technologies servers were part of transactions involving restricted NVIDIA chips to China, though Dell claims compliance.
Dell Technologies' servers being used to deliver NVIDIA chips to China could attract regulatory attention, but Dell's ongoing investigation and claim of compliance suggest a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
NVIDIA chips were acquired by Chinese entities despite U.S. restrictions, raising concerns about enforcement of export controls.
The acquisition of NVIDIA chips by Chinese entities despite U.S. bans highlights the difficulty in enforcing export controls, but NVIDIA's statement suggests compliance with regulations, making the short-term impact neutral.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Super Micro Computer servers were used by Chinese entities to obtain restricted NVIDIA chips, indicating potential scrutiny.
Super Micro's involvement in the embedding of NVIDIA chips in servers used by Chinese entities could lead to scrutiny, but the company's claim of compliance with laws suggests a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70