(VOR News) – Nvidia is apparently preparing for challenges to its chip business in China. The chipmaker is apparently looking to Samsung for a major component of its specially developed processor.

Samsung is reportedly interested in providing NVIDIA with this component. Nvidia has reportedly given its approval for Samsung’s fourth-generation high bandwidth memory chips, which are referred to as HBM3, to be utilised in the company’s artificial intelligence processors, which are referred to as H20.

This information was reported by Reuters, which cited unnamed individuals who are aware with the matter. These chips are constructed in a manner that is in accordance with the export regulations that are in place in the United States.

Three Nvidia processors aren’t subject to export control.

These processors are available for your purchase. The H20 graphics processing unit, commonly referred to as a GPU, is represented by one of these processors. Because there is a shortage of memory chips, Nvidia’s production of artificial intelligence chips has slowed down in response to the increasing demand for its processors.

This is because of the scarcity of memory chips. Consequently, in order to improve the company’s supply, it would be wise to turn to Samsung.

It has been reported by individuals who spoke with Reuters that this will be the very first occasion that chips manufactured by Apple’s HBM3 will be employed by chips manufactured by Nvidia.

Nevertheless, it is not apparent whether or not Nvidia will be interested in utilising it in other circuits that are designed for artificial intelligence.

For its artificial intelligence chips, Nvidia is claimed to have informed its suppliers that it will employ the HBM3 chips in addition to Samsung’s fifth-generation memory chips, which are known as HBM3E. This information is said to have been sent to the suppliers.

The material was provided by The material, which cited individuals who are familiar with the subject matter but did not identify themselves personally.

Sources have informed Reuters that Samsung, which is currently dealing with a strike by its employees in South Korea, has not been able to achieve the requirements established by Nvidia with its HBM3E processors and is continuing to test the chips. This information comes as Samsung is currently coping with the strike.

Samsung didn’t respond immediately, and Nvidia didn’t comment.

Samsung’s request for a comment was not immediately given a response. In spite of the trade restrictions imposed by the United States, the Financial Times claimed that Nvidia is expected to sell more than one million of its H20 chips in China this year, with a total worth of around $12 billion.

The data that was published by the Financial Times came from SemiAnalysis. However, analysts at Jeffries warned that “it is highly likely that” the H20 chip built by Nvidia will be restricted from being sold in China when the United States conducts its annual review of the limits set on the export of semiconductors from the United States in October.

This review allows the United States to determine whether or not the limits should be increased or decreased.

Apparently, Nvidia is working on a version of its most recent artificial intelligence chips that will be compatible with the rules that are being proposed by the United States to establish more harsh trade restrictions in order to prevent advanced semiconductor equipment from reaching China.

These laws are being studied in order to prevent it from reaching China.

According to Reuters, which cited anonymous sources who are familiar with the matter, the chipmaker will engage with a local distribution partner known as Inspur in order to market and sell a new version of its Blackwell chips in China. This version is being called to informally as “B20,” and it is being referred to in this manner.

SOURCE: QZN