Intel and Nvidia are set to release adapted versions of their AI chips for the Chinese market, in compliance with U.S. export controls and sanctions. Intel plans to introduce two chips, the HL-328 and HL-388, in June and September respectively, according to a white paper on the company’s website dated April 12.
The new chips are based on Intel’s latest Gaudi 3 product line, unveiled on April 9. While they share similar features to their global counterparts—including on-chip memory, high-bandwidth memory, and interface standards—the performance of these China-specific chips has been reduced to meet U.S. export regulations.
Nvidia, a key competitor, is also preparing to launch three China-specific chips following tightened U.S. rules capping the capabilities of AI chips that can be shipped to the Chinese market. One of Nvidia’s adapted chips, the H20, is expected to be delivered in small batches in the first quarter of 2024, with larger quantities from the second quarter.
“If companies don’t offer their most advanced products to foreign customers, they risk losing them,” said Zeng Yi, a professor of AI at the Institute of Automation of the Chinese Academy of Sciences. “And once those customers are gone, they may not return even if policies change. In this case, China needs to build alternative AI ecosystems as soon as possible.”
Intel faces challenges as its manufacturing technology lags behind competitors, and pressure mounts from rivals like AMD and Nvidia. The Chinese mainland market is significant for Intel, accounting for 27% of the company’s revenue in 2023—the largest share among all regions.
The release of adapted AI chips highlights the tech industry’s efforts to navigate geopolitical tensions and maintain access to important markets. As export controls continue to shape market dynamics, companies and countries alike are prompted to consider new strategies.
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Intel to launch weaker AI chips for China to comply with U.S. sanction
cgtn.com
