(Yicai) Oct. 18 -- The new restrictions on advanced artificial intelligence chips to China implemented by the United States will not affect Nvidia in the short term, according to the Chinese arm of the US chipmaker.

“Given the global demand for our products, we don’t expect a near-term meaningful impact on our financial results,” Nvidia China told Yicai. “We comply with all regulations while working to provide products that support thousands of applications across many different industries.”

The Biden administration updated export control rules on AI chips yesterday, planning to ban companies from exporting advanced AI chips to China, which is expected to take effect in 30 days. Nvidia’s A800 and H800 chips were included in the export ban.

“These export controls are intended to protect technologies that have clear national security or human rights implications,” US Secretary of Commerce Gina Raimondo said. “The goal is the same goal that has always been, which is to limit China’s access to advanced semiconductors that could fuel breakthroughs in AI,” she added, noting that the vast majority of chips will remain unrestricted.

The restrictions will affect not only chipmakers such as Nvidia, Advanced Micro Devices, and Intel but also chip equipment manufacturers, including Applied Materials, Lam Research, and KLA.

The US first introduced export curbs on AI chips to China last September when it imposed bandwidth rate limits on AI chips exported to China. Nvidia’s A100 and H100 chips were among the affected products.

Since then, Nvidia has offered Chinese companies the A800 and H800 chips. However, these products have lower data transmission efficiency. The A800’s transmission rate of NVLink is 400 gigabytes per second, compared with 600GB/s of the A800. The H800’s transmission rate is 400GB/s, versus 800 GB/s of the H100.

Although export restrictions in the US have exacerbated concerns about Nvidia chips entering the Chinese market, the company’s business has continued to grow.

Nvidia’s net profit soared 422 percent to USD6.7 billion in the three months ended July 30 from a year earlier, according to the firm’s latest quarterly earnings report. Revenue jumped 171 percent to USD13.5 billion. For the running quarter, Nvidia expects revenue of about USD16 billion.

Editor: Futura Costaglione