US CHIPHA CHIPTS FOR Chinese opponents Nvidia as Huawei: Analysts

As the US tightens control over NVIDIA sales in China, the growth of gastric manufacturers in artificial intelligence, such as Huawei, in favor, say semiconductor analysts.

Department of Trade said last week What Nvidia H20 graphs are designed to fulfill previous US restrictions Amd. Nvidia states that the exports of graphic processors have already stopped, which led to a quarterly charge of about $ 5.5 billion.

But the loss of American AI Darling can become a profit for local chips in China as Beijing continues to look for its own alternative to Nvidia, CNBC Semiconductor Analytts reported.

“There are several local Chinese companies that produce chips to compete with NVIDIA,” said Brad van, Deputy Director of Contrapoint Research.

Examples of these local AI chip manufacturers include Tech Powerhouse Huawei Technology and partly state and publicly listed Cambricon Technologies that develop graphic processors.

Cambricon shares for the last five trading days have increased by 10% amid the latest NVIDIA’s latest controls. In the last 12 months, shares have increased by 400%.

Now these local competitors have a greater impetus and the opportunity to grow and improve their decisions, Van said, adding that the demand for their graphic processors will increase.

Analysts have shown on Huawei as a clear leader in the Chinese race to find a competitor Nvidia. A US-black list The company works on its own “Ascending 910“The GPU series, the last of which is reportedly Ascending 910c.

“With H20 with H20 and other advanced graphic processors, domestic alternatives, such as the Ascend Huawei series, acquire cravings,” said the O’Alaflin Doug, an industrial analyst of the independent company Semianalysis Semianalysis.

A Last report Semianalysis states that although Huawei remains a “generation behind in chips”, the company “makes waves” with the equipment that uses them.

“Although there are still spaces in the maturity of software and general readiness for the ecosystem, the productivity of the equipment is quickly closed,” O’Laflin added.

However, experts point out that export control also prevented China’s capacity to produce modern graphic processors on the same scale as Nvidia through their partner Taiwanese semiconductor production companyThe world’s largest chips manufacturer.

“Huawei has shown that it is a competitive designer of Fables … But they are struggling to find enough suppliers of their foundry manufacturers,” said Felix Lee, an analyst focused on a semiconductor shareholder for Morningstar.

Because TSMC chips include US technology, the company has implemented US trading restrictions on Huawei and shipping advanced chips to China. This left Chinese companies increasingly dependent on household foundry like International Semicoler Production Corporation.

However, Smic is under its own export control that does not allow access to Some of the most advanced chips in the world.

Given these conditions, Lee said, he remains “very skeptical” that Chinese foundry widgets will be able to put a sufficient number of H20 GPU alternatives to meet the demand of Chinese technology companies soon.

Last month information report In the first three months of the year, Chinese companies placed orders for at least $ 16 billion in H20 server chips. Nvidia did not immediately respond to the CNBC request about the comment.

According to Wang CounterPoint, it is unclear how long existing stocks of different firms will last, but they provide Chinese chips more time to increase the production of the graphic processor.

In the short term, “I believe that the impact of control is limited … In the middle and longer term, it will depend on the progress of this local development of the graphic processor,” he said.

Meanwhile, according to the Semianalysis report, the Huawei Ascend chip shows how China’s export control has not stopped firms such as Huawei from access to critical foreign tools and sub-components needed for advanced graphic processors.

“While the Ascend Chip can be made in Smic, it is a global chip that has HBM from Korea, primary plate production from TSMC, and 10 billion billion plates equipment from the US, the Netherlands and Japan is produced,” the statement said.

Semianalysis added that Smic production potential has a potential for mass growth, given the constant access to foreign tools and lack of effective sanctions and forced execution.

TSMC is justify As part of the investigation, the US Trade Ministry after a chip made for the Chinese Sophg, corresponded to the one found in the Huawei 910B artificial intelligence processor.

Considering the export control and the progress of Huawei’s graphical processor, a number of semiconductor experts expressed doubts that the latest restrictions on Nvidia will reach its goal.

“US control over graphic processors and semiconductor production equipment was primarily damaged by US companies, including Nvidia, had a marginal impact on the ability of Chinese companies to develop AI borderline models,” said Paul Triiol, a partner and senior vice -president in China in DGA Group.

Instead, export control encouraged the Chinese semiconductor industry to become more innovative, “developing US technology,” he added.

Next month Nvidia may face additional restrictions in that it can export under “Rules of diffusion of AI“For the first time it was offered by the Biden administration.