U.S. and Chinese Chip Companies Are Making Compromises To Get Around the Biden Chip Wars

Aug. 13, 2023, 2022 (EIRNS)—Global Times reported Aug. 10 that U.S. chip giant Nvidia “reportedly reached a $1 billion deal with Chinese tech giants for A800 processors, as U.S. chipmakers ramp up sales of modified chips to China despite ongoing U.S. efforts to suppress China’s chip industry.”

The impact of the chip war on U.S. companies is significant: “For the quarter ended on July 1, Intel’s revenue fell 15% year-on-year to $12.9 billion, marking the sixth consecutive quarter of declining sales, according to the company’s second-quarter report.”

The Nvidia deal, worth about $1 billion, is with Baidu, ByteDance, Tencent and Alibaba, for approximately 100,000 A800 processors, the Financial Times reported on Aug. 10. “The A800 is a less-powerful version of Nvidia’s cutting-edge model, after U.S. officials asked the company to stop exporting its two top computing chips to China for work related to artificial intelligence (AI),” Global Times reports.