Key Points:
- Intel is launching two AI chips, HL-328 and HL-388, tailored for the Chinese market in compliance with U.S. export controls and sanctions.
- Nvidia is also developing China-specific chips in response to tightened regulations on exporting advanced technology to China.
- Intel’s chips are part of the Gaudi 3 product line and feature on-chip memory, high-bandwidth memory, and interface standards.
- Limiting chip performance is intended to comply with export control regulations while still catering to the Chinese market’s demand for AI technology.
In response to U.S. export controls and sanctions, Intel Corporation has announced plans to release two AI chips tailored for the Chinese market. The chips, HL-328 and HL-388, are scheduled for launch in June and September, respectively, according to a white paper published on Intel’s website on April 12.
The news was first reported by tech outlet The Register, and it sheds light on Intel’s strategy to navigate regulatory constraints while maintaining a presence in China’s burgeoning AI sector.
Rival chipmaker Nvidia (NVDA.O) has also unveiled plans for three China-specific chips following tightened U.S. regulations late last year. These regulations imposed limitations on the capabilities of AI chips that could be exported to China, prompting semiconductor giants to adjust their product offerings accordingly.
Based on the Gaudi 3 product line introduced on April 9, Intel’s China-specific AI chips boast advanced hardware features such as on-chip memory, high-bandwidth memory, and standardized interfaces.
However, to comply with export control regulations, Intel will significantly reduce the performance of these chips. This strategic move allows Intel to navigate the regulatory landscape while continuing to cater to the demands of the Chinese market.
Nvidia’s H20 chip, designed specifically for China, is expected to be delivered in small batches in the first quarter of 2024, with larger quantities anticipated in the following quarter, as reported by Reuters in January. This underscores the competitive dynamics in the semiconductor industry as players adapt to evolving regulatory frameworks and market demands.
