Trade Trends News
· AMD says it sees an opportunity to develop AI chips specifically for the Chinese market to comply with U.S. export restrictions.
· NVIDIA and Intel have created modified versions of their AI chips and shipped them to China to comply with export restrictions.
· AMD is preparing to increase production of its MI300 chip, which is being positioned as a competitor to Nvidia's graphics processing unit for AI training.
China is a very important market for us, especially in our portfolio, because we're definitely thinking about the gas pedal market. Our plan is of course to be fully compliant with U.S. export controls, but we do believe there is an opportunity to develop products for Chinese customers who are looking for AI solutions, and we will continue to work in that direction.
—— Dr. Zifeng Su, Chief Executive Officer, AMD
AMD says it sees an opportunity to develop AI chips specifically for the Chinese market to comply with U.S. export restrictions, a move that would follow rivals Nvidia and Intel.
Speaking on an earnings call Tuesday night, AMD CEO Lisa Su said China is an "important" market and the semiconductor giant wants to fully comply with U.S. export controls.
"When we think about the gas pedal market, our plan is of course to be in full compliance with U.S. export controls, but we do believe there are opportunities to develop products for a Chinese customer base that is looking for AI solutions, and we will continue to work in that direction," Su said.
Gas pedal chips are semiconductors needed to train large amounts of data for AI applications.
AMD is preparing to increase production of its MI300 chip, which is being positioned as a competitor to Nvidia's graphics processing units for AI training. nvidia dominates the market, but AMD is looking to challenge it with its newest chips.
Earlier this year, the U.S. government restricted Nvidia from selling its A100 and H100 chips to China. the H100 is one of Nvidia's key AI chips. nvidia decided to create a chip with tweaks to the H100's specs to comply with the export restrictions. the H100 has been used in China for a number of years, but it has been used in China for a number of other applications.
Intel also made a modified version of its Gaudi 2 AI chip for the Chinese market.
China remains a lucrative market for U.S. chipmakers, especially in the AI space, where there are few local alternatives to the likes of Nvidia.
For AMD, its MI300 AI chip is important as it looks to compete with Nvidia. The company expects the chip to help it rapidly grow its data center business for the rest of the year.
AMD expects its data center business to grow about 50 percent in the second half of the year compared to the first half, thanks in part to the new AI chip, Su said.
NVIDIA has taken steps to comply with export regulations by limiting GPU interconnect bandwidth to 400 GB/s for the A100 and H100 GPU families, leading to the introduction of new SKUs called the A800 and H800. Intel has made similar adjustments, targeting a different market with the introduction of the Max 1450 to replace the canceled Data Center Max 1350 GPU ( Intel has also made similar adjustments by introducing the Max 1450 to replace the canceled Data Center Max 1350 GPU (Ponte Vecchio) for different markets.
Clearly, there is tremendous demand and financial opportunity in this space, and all GPU manufacturers, including AMD, are eager to secure their market share. It would be unwise for AMD to ignore this potential.
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