USA curbs Nvidia AI chips exports to Middle East

 

The United States government recently made a bold move to restrict its semiconductor and AI chips exports to middle eastern countries. This decision is taken in the wake of China's malicious activities. As per the sources, China uses these items to retrieve USA's confidential information to make advancement in their technologies for military and geographical purposes.

However, this decision may impact the USA’s top chip makers like Nvidia and AMD.

According to the US import export data reports, China accounts for over 18% share in the imports of AI chips from the USA.Due to the export restrictions, the sales would be impacted.Although, Nvidia concluded that the sales might not get affected but the data shows that the company’s revenue went down.

As per US export data reports, Nvidia collected over $13 billion in July, 2023. Nvidia's majority of the revenue comes from USA, China, Taiwan and Middle Eastern countries. But after this ban, Nvidia has collected only 13% of its revenue from other markets. 

Also, the shares of Nvidia and AMD are declining over time. Whereas, earlier this year, the shares of Nvidia, S&P 500 and AMD were on rise. The US move is to take China completely out of the equation from US made chips technology in order to guard its country's security.

Now, China has also limited its chip exports to the USA for similar reasons.  As the tech war between China and the United States intensified, the impact is seen on their trading partners like South Korea and Japan. Global import export data provider reports reflect that there was a 24% decline in the chip imports by China.It was estimated to be around 131 billion dollars in 2023.

In comparison to China’s last year's statistical reports, the imports were recorded to be $230 billion dollars for the same period. In 2023, there was a significant decline in China’s AI chips imports from South Korea had fallen by 24%. Same pattern was followed by Japan (17%) and Taiwan (26%).

China is now focussing on increasing AI chips production.China, the United States along with Taiwan are the prominent importers of AI chips worldwide. The US is putting all its efforts to disrupt China's Ai chip imports by forming an alliance with Japan, South Korea and Taiwan. Amid this tech war, companies looking to import AI chips and other semiconductor devices could capitalize on global trade information. 

Exim Trade Intelligence System is one such platform offering detailed and accurate insights about the global market. This tool will provide you accurate insights about global supply chain networks of semiconductor chips. You can explore country wise imports, verified buyers, suppliers and calculate financial risk.

It will evolve your decision making and help you enhance your production. If you are looking to expand your business to the US, then US import data could help. Similarly, you can find leads from over 200+ markets and excel your sales at minimal cost. Exim GTIS is the perfect tool for import export beginners as well as large firms.