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Intel to launch two AI chips for China with reduced capabilities

Economic Times

Economic Times · 1y ago

Intel to launch two AI chips for China with reduced capabilities

Intel plans to release two AI chips, the HL-328 and HL-388, with limited capabilities specifically for the Chinese market to comply with US export controls and sanctions. The chips, based on Intel's Gaudi 3 product line, will have reduced performance to meet regulatory requirements. This move follows a similar strategy by Nvidia, which is also developing three chips for the Chinese market. The US has tightened regulations on the export of AI chips to China, placing restrictions on their capabilities.

Related News

Trump to meet with Nvidia CEO on Friday: Report

Economic Times

Economic Times · 6m ago

Trump to meet with Nvidia CEO on Friday: Report

U.S. President Donald Trump is set to meet Nvidia CEO Jensen Huang at the White House amid discussions on restricting AI chip sales to China. The meeting aligns with potential new U.S. rules limiting AI chip exports to preserve advanced computing power among allies. Concerns about China's advancing AI capabilities are rising, especially following the successful launch of China's AI assistant, DeepSeek. Discussions are ongoing on tightening restrictions on Nvidia's H20 chips designed for China.

Microsoft debuts 'Copilot+' PCs with AI features

Economic Times

Economic Times · 1y ago

Microsoft debuts 'Copilot+' PCs with AI features

Microsoft has unveiled a new category of personal computers that feature artificial intelligence (AI) capabilities. These new "Copilot+" PCs can handle AI tasks without relying on cloud data centers and come with a feature called "Recall" which tracks user activity. Microsoft aims to sell 50 million AI PCs within a year. The company also introduced new Surface Pro tablets and laptops with Qualcomm chips and showcased technology that allows software written for Intel and AMD chips to run on Arm-based chips. Apple, too, has revealed plans for AI-focused chips in future laptops.

Everyone’s rattled by the rise of DeepSeek—except Nvidia, which enabled it

Livemint

Livemint · 6m ago

Everyone’s rattled by the rise of DeepSeek—except Nvidia, which enabled it

Nvidia has been navigating U.S.-China tensions while continuing to sell AI chips in China. Amid rising export restrictions aimed at limiting China's AI capabilities, Nvidia adapted by developing modified chips compliant with U.S. rules, sparking frustrations in Washington. Despite potential risks, Nvidia views long-term engagement with China as essential for maintaining its market leadership. The company's strategy included lobbying against new regulations, even as debates intensified over balancing business interests and national security concerns.

US chip bans not meant to hobble China's growth, Blinken says

Economic Times

Economic Times · 1y ago

US chip bans not meant to hobble China's growth, Blinken says

US export controls on sending advanced computing chips to China are not aimed at hindering China's economy or technological progress, according to Secretary of State Antony Blinken. Despite the restrictions imposed on exporting computing chips to China since 2022, Intel and Qualcomm have been granted licenses to continue supplying chips to Huawei. Blinken emphasized that the US is focused on safeguarding sensitive technology that could potentially threaten security, rather than impeding trade or restraining China as a whole. The rationale behind granting exemptions to Intel and Qualcomm, while neglecting their competitors, AMD and MediaTek, remains unclear.

Trump says Intel CEO Lip-Bu Tan must 'resign immediately' | TechCrunch

TechCrunch · 15d ago

Trump says Intel CEO Lip-Bu Tan must 'resign immediately' | TechCrunch

Amidst rising U.S.-China tensions, President Trump demanded Intel CEO Lip-Bu Tan's resignation over alleged conflicts of interest, though no evidence was provided. Intel defended Tan, emphasizing investments in U.S. semiconductor operations. The demand followed Senator Tom Cotton's inquiry into Tan's China ties. Tan has focused on boosting Intel's efficiency by streamlining operations. Intel plays a key role in the CHIPS Act with major U.S. investments, supporting the Biden administration's agenda.

US chipmakers outsourcing manufacturing will escape China's tariffs

Economic Times

Economic Times · 4m ago

US chipmakers outsourcing manufacturing will escape China's tariffs

US chipmakers outsourcing manufacturing, like Qualcomm and AMD, are exempt from China's retaliatory tariffs, as chips are classified by the wafer fabrication plant's location. For chips made by companies like Intel with US-based plants, tariffs may be applied. This distinction follows China's tariff increase on US imports, impacting the industry, and potentially benefiting China's domestic chipmaking as foreign companies might adopt a "China for China" strategy, enhancing local supply chains.

Intel, AMD fall on report China blocks U.S. chips in state computers

Reuters · 1y ago

Intel, AMD fall on report China blocks U.S. chips in state computers

Shares of Intel and Advanced Micro Devices (AMD) dropped by over 2% following reports that China will limit the use of their chips and servers in government computers. This move could potentially impact billions of dollars in sales for the US companies, as China is Intel's largest market and accounts for a significant portion of AMD's sales. Analysts predict that a total cessation of China's governmental purchases of Intel and AMD CPUs could lead to a revenue hit of up to $1.5 billion for Intel and a few hundred million dollars for AMD. Microsoft, whose revenue from China is not disclosed separately, also saw a slight decline in its shares.

PC makers bet on AI to rekindle sales

Economic Times

Economic Times · 1y ago

PC makers bet on AI to rekindle sales

PC and microchip companies such as AMD and Intel are turning to neural processing units (NPUs) to boost sales of higher-end laptops. These NPUs provide AI capabilities and can outperform traditional processors for AI tasks with lower power consumption. Although there are currently limited applications that make full use of these capabilities, chipmakers believe more are on the way. PC vendors like Dell and Lenovo showcased their latest laptops with AI demos at CES, including features like a dedicated AI key and Microsoft's generative AI software. These advanced AI chips are initially being offered in more expensive laptops.

Trump’s flip-flop on Nvidia chips is a win for China

Livemint

Livemint · 28d ago

Trump’s flip-flop on Nvidia chips is a win for China

The Trump administration's abrupt reversal of export restrictions on Nvidia's H20 chips enables their shipment to China, sparking national security concerns. Initially restricted due to fears of enhancing Chinese AI capabilities, the decision allows Nvidia to resume sales once licenses are approved. Previously, Chinese firms like DeepSeek used these powerful chips to advance AI models. This development signifies a regulatory about-face, potentially benefiting China in the geopolitical tech sphere.

China slams US 'bullying' over new warnings on Huawei chips

Economic Times

Economic Times · 3m ago

China slams US 'bullying' over new warnings on Huawei chips

Beijing criticized U.S. warnings about using Huawei AI chips, calling it "bullying" that undermines global semiconductor stability. The U.S. seeks to curb chip exports to China, fearing their potential use in advancing China's military and AI capabilities. Washington issued guidelines against using Huawei's Ascend chips without clearance, threatening penalties. China vowed to safeguard its interests against these measures, accusing the U.S. of suppression. Nvidia's CEO criticized these U.S. controls as counterproductive.

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