NVIDIA and Intel are adapting to the latest U.S. chip export restrictions by introducing downgraded AI chips specifically tailored for the Chinese market, UDN News said.

According to insider from the China Star Market, a Chinese media, NVIDIA has developed three downgraded AI chip models for the Chinese market. Intel also plans to release downgraded Gaudi 2 chip with an aim to US restriction.

NVIDIA’s latest downgraded AI chips, including HGX H20, L20 PCle, and L2 PCle, are anticipated to be unveiled after November 16th. Chinese companies are likely to receive samples in the coming days. These three chips, derived from the modification of NVIDIA H100, will align their performance with parameters below the new U.S. regulations. Ongoing communication with NVIDIA suggests mass production is slated for the year-end, said by industry sources.

Besides, Yicai also confirms from multiple NVIDIA supply chain sources. The three AI chip products are designed for cloud training, cloud inference, and edge inference, with specific launch times pending confirmation. Sampling is projected between November and December this year, followed by mass production from December this year to January next year.

On the Intel front, there are rumors of a response plan. As reported by The Paper, Intel is planning to release an improved version of its Gaudi 2 chip. Although the rumor exists, specific details are yet to be disclosed.

Since the U.S. government introduced chip export control to China last year, NVIDIA initially designed downgraded AI chips A800 and H800 for Chinese companies. However, new regulations in October this year by the U.S. Department of Commerce brought A800, H800, L40S, and other chips under control. Failure to secure export permission may necessitate order cancellations for NVIDIA.

(Image: Nvidia)

According to a report by Taiwan’s Economic Daily, Foxconn Group has achieved another triumph in its AI endeavors. The company has secured orders for over 50% of NVIDIA’s HGX GPU base boards, marking the first instance of such an achievement. Adding to this success, Foxconn had previously acquired an order for another NVIDIA DGX GPU base board, solidifying its pivotal role in NVIDIA’s two most crucial AI chip base board orders.

The report highlights that in terms of supply chain source, Foxconn Group stands as the exclusive provider of NVIDIA’s AI chip modules (GPU Modules). As for NVIDIA’s AI motherboards, the suppliers encompass Foxconn, Quanta, Inventec, and Super Micro.

Industry experts analyze that DGX and HGX are currently NVIDIA’s two most essential AI servers, and Foxconn Group has undertaken the monumental task of fulfilling the large order for NVIDIA’s AI chipboards through its subsidiary, Foxconn Industrial Internet (FII). Having previously secured orders for NVIDIA’s DGX base boards, Foxconn Group has now garnered additional orders from FII for the HGX base boards. This expanded supply constitutes more than half of the total, solidifying Foxconn Group’s role as a primary supplier for NVIDIA’s two critical AI chip base board orders.

Furthermore, Foxconn’s involvement doesn’t end with AI chip modules, base boards, and motherboards. The company’s engagement extends downstream to servers and server cabinets, creating a vertically integrated approach that covers the entire AI ecosystem.

(Photo credit: Nvidia)