Latest news with #KarenFreifeld
Time of India
2 days ago
- Business
- Time of India
US licenses Nvidia to export chips to China, official says
By Karen Freifeld The commerce department has started issuing licenses to Nvidia to export its H20 chips to China, a U.S. official told Reuters on Friday, removing a significant hurdle to the AI bellwether's access to a key market. The U.S. last month reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor specially to the Chinese market to comply with the Biden-era AI chip export controls . The curbs will slice $8 billion off sales from its July quarter, the chipmaker has warned. Nvidia CEO Jensen Huang met with Trump on Wednesday, two sources familiar with the matter told Reuters. A spokesperson for Nvidia declined comment. A White House spokesman did not immediately respond to a request for comment. The company said in July it was filing applications with the U.S. government to resume sales to China of the H20 graphics processing unit , and had been assured it would get the licenses soon. It is unclear how many licenses may have been issued, which companies Nvidia is allowed to ship the H20s to, and the value of the shipments allowed. Nvidia disclosed in April that it expected a $5.5 billion charge related to the restrictions. In May, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. The Financial Times first reported Friday's developments. Nvidia said last month that its products have no "backdoors" that would allow remote access or control after China raised concerns over potential security risks in the H20 chip. BIG MARKET Exports of Nvidia's other advanced AI chips, barring the H20, to China are still restricted. Successive U.S. administrations have curbed exports of advanced chips to China, looking to stymie Beijing's AI and defense development. While this has impacted U.S. firms' ability to fully address booming demand from China, one of the world's largest semiconductor markets, it still remains an important revenue driver for American chipmakers. Huang has said the company's leadership position could slip without sales to China, where developers were being courted by Huawei Technologies with chips produced in China. In May, Nvidia said the H20 had brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue during the period.
Time of India
2 days ago
- Business
- Time of India
US licenses Nvidia to export chips to China, official says
By Karen Freifeld The commerce department has started issuing licenses to Nvidia to export its H20 chips to China, a U.S. official told Reuters on Friday, removing a significant hurdle to the AI bellwether's access to a key market. The U.S. last month reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor specially to the Chinese market to comply with the Biden-era AI chip export controls . The curbs will slice $8 billion off sales from its July quarter, the chipmaker has warned. Nvidia CEO Jensen Huang met with Trump on Wednesday, two sources familiar with the matter told Reuters. A spokesperson for Nvidia declined comment. A White House spokesman did not immediately respond to a request for comment. The company said in July it was filing applications with the U.S. government to resume sales to China of the H20 graphics processing unit , and had been assured it would get the licenses soon. It is unclear how many licenses may have been issued, which companies Nvidia is allowed to ship the H20s to, and the value of the shipments allowed. Nvidia disclosed in April that it expected a $5.5 billion charge related to the restrictions. In May, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. The Financial Times first reported Friday's developments. Nvidia said last month that its products have no "backdoors" that would allow remote access or control after China raised concerns over potential security risks in the H20 chip. BIG MARKET Exports of Nvidia's other advanced AI chips, barring the H20, to China are still restricted. Successive U.S. administrations have curbed exports of advanced chips to China, looking to stymie Beijing's AI and defense development. While this has impacted U.S. firms' ability to fully address booming demand from China, one of the world's largest semiconductor markets, it still remains an important revenue driver for American chipmakers. Huang has said the company's leadership position could slip without sales to China, where developers were being courted by Huawei Technologies with chips produced in China. In May, Nvidia said the H20 had brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue during the period.
Time of India
29-07-2025
- Business
- Time of India
Cadence nears deal to pay over $100 million to US for China sales
By Karen Freifeld Cadence Design is expected to pay over $100 million to the U.S. government as part of a deal to resolve an investigation into sales of its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, according to two people familiar with the matter. Cadence is accused of illegally selling chip design technology to front companies representing China's National University of Defense Technology, the sources said. NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to U.S. Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence, which said earlier this year it began settlement discussions with the U.S. over sales to China in December, did not immediately respond to a request for comment, nor did NUDT. The Justice Department declined immediate comment. The Commerce Department did not immediately respond to a request for comment. The potential deal, which comes as the U.S. and China meet for new trade talks, shows the U.S. is still willing to enforce U.S. export controls on China, even as it relaxes some of the restrictions as part of negotiations. The sources said the deal is not finalized. NUDT was put on the Commerce Department's restricted trade list in 2015 to keep it from using U.S. technology to power its supercomputers, according to department postings. Other aliases and locations were added to the university's listing in 2019 and 2022, including Hunan Guofang Keji University, Central South CAD Center, and CSCC. The U.S. investigation into Cadence, which began more than four years ago, involves "historical sales by Cadence to customers in China," according to a company filing. Cadence received a subpoena from the U.S. Commerce Department in February 2021, demanding records related to certain customers in China. A related November 2023 subpoena followed from the Justice Department over the company's business activity in China. Cadence sold its EDA technology to NUDT through the CSCC or Central South CAD Center alias about 50 times between 2015 and 2020, according to one source familiar with the probe. Chip developer Tianjin Phytium Information Technology, which traces its roots to NUDT, also has been tied to Cadence sales for the university, another source said. Phytium was added to the restricted trade list in 2021. It did not immediately respond to a request for comment. Several employees at a Chinese subsidiary of Cadence were terminated over the sales, one of the sources said. Entities are placed on the restricted trade list, formally known as the entity list, for activities deemed contrary to U.S. national security or foreign policy interests. U.S. companies are not allowed to ship goods and technology to them without licenses from the Commerce Department, which are generally denied. Cadence will hold a call about its second-quarter financial results at 2 p.m. Pacific Time (2100 GMT) on Monday. Cadence, whose customers include major semiconductor manufacturers and companies such as Nvidia and Qualcomm, is known for its electronic computer-aided design software. Electronic design automation (EDA) tools are key to designing chips and verifying that they are bug-free. NUDT has developed chips to power university supercomputers, including Tianhe-2, once touted as the world's best supercomputer, which the U.S. believes has been used in research on or the development of nuclear explosive devices. Twelve percent of Cadence's revenue came from China last year, down from 17% in 2023, amid regulatory developments and geopolitical tensions.
Yahoo
28-07-2025
- Business
- Yahoo
Exclusive-Cadence nears deal to pay over $100 million to US for China sales, sources say
By Karen Freifeld (Reuters) -Cadence Design is expected to pay over $100 million to the U.S. government as part of a deal to resolve an investigation into sales of its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, according to two people familiar with the matter. Cadence is accused of illegally selling chip design technology to front companies representing China's National University of Defense Technology, the sources said. NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to U.S. Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence, which said earlier this year it began settlement discussions with the U.S. over sales to China in December, did not immediately respond to a request for comment, nor did NUDT. The Justice Department declined immediate comment. The Commerce Department did not immediately respond to a request for comment. The potential deal, which comes as the U.S. and China meet for new trade talks, shows the U.S. is still willing to enforce U.S. export controls on China, even as it relaxes some of the restrictions as part of negotiations. The sources said the deal is not finalized. NUDT was put on the Commerce Department's restricted trade list in 2015 to keep it from using U.S. technology to power its supercomputers, according to department postings. Other aliases and locations were added to the university's listing in 2019 and 2022, including Hunan Guofang Keji University, Central South CAD Center, and CSCC. The U.S. investigation into Cadence, which began more than four years ago, involves 'historical sales by Cadence to customers in China,' according to a company filing. Cadence received a subpoena from the U.S. Commerce Department in February 2021, demanding records related to certain customers in China. A related November 2023 subpoena followed from the Justice Department over the company's business activity in China. Cadence sold its EDA technology to NUDT through the CSCC or Central South CAD Center alias about 50 times between 2015 and 2020, according to one source familiar with the probe. Chip developer Tianjin Phytium Information Technology, which traces its roots to NUDT, also has been tied to Cadence sales for the university, another source said. Phytium was added to the restricted trade list in 2021. It did not immediately respond to a request for comment. Several employees at a Chinese subsidiary of Cadence were terminated over the sales, one of the sources said. Entities are placed on the restricted trade list, formally known as the entity list, for activities deemed contrary to U.S. national security or foreign policy interests. U.S. companies are not allowed to ship goods and technology to them without licenses from the Commerce Department, which are generally denied. Cadence will hold a call about its second-quarter financial results at 2 p.m. Pacific Time (2100 GMT) on Monday. Cadence, whose customers include major semiconductor manufacturers and companies such as Nvidia and Qualcomm, is known for its electronic computer-aided design software. Electronic design automation (EDA) tools are key to designing chips and verifying that they are bug-free. NUDT has developed chips to power university supercomputers, including Tianhe-2, once touted as the world's best supercomputer, which the U.S. believes has been used in research on or the development of nuclear explosive devices. Twelve percent of Cadence's revenue came from China last year, down from 17% in 2023, amid regulatory developments and geopolitical tensions. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-07-2025
- Business
- Yahoo
Exclusive-Cadence nears deal to pay over $100 million to US for China sales, sources say
By Karen Freifeld (Reuters) -Cadence Design is expected to pay over $100 million to the U.S. government as part of a deal to resolve an investigation into sales of its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, according to two people familiar with the matter. Cadence is accused of illegally selling chip design technology to front companies representing China's National University of Defense Technology, the sources said. NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to U.S. Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence, which said earlier this year it began settlement discussions with the U.S. over sales to China in December, did not immediately respond to a request for comment, nor did NUDT. The Justice Department declined immediate comment. The Commerce Department did not immediately respond to a request for comment. The potential deal, which comes as the U.S. and China meet for new trade talks, shows the U.S. is still willing to enforce U.S. export controls on China, even as it relaxes some of the restrictions as part of negotiations. The sources said the deal is not finalized. NUDT was put on the Commerce Department's restricted trade list in 2015 to keep it from using U.S. technology to power its supercomputers, according to department postings. Other aliases and locations were added to the university's listing in 2019 and 2022, including Hunan Guofang Keji University, Central South CAD Center, and CSCC. The U.S. investigation into Cadence, which began more than four years ago, involves 'historical sales by Cadence to customers in China,' according to a company filing. Cadence received a subpoena from the U.S. Commerce Department in February 2021, demanding records related to certain customers in China. A related November 2023 subpoena followed from the Justice Department over the company's business activity in China. Cadence sold its EDA technology to NUDT through the CSCC or Central South CAD Center alias about 50 times between 2015 and 2020, according to one source familiar with the probe. Chip developer Tianjin Phytium Information Technology, which traces its roots to NUDT, also has been tied to Cadence sales for the university, another source said. Phytium was added to the restricted trade list in 2021. It did not immediately respond to a request for comment. Several employees at a Chinese subsidiary of Cadence were terminated over the sales, one of the sources said. Entities are placed on the restricted trade list, formally known as the entity list, for activities deemed contrary to U.S. national security or foreign policy interests. U.S. companies are not allowed to ship goods and technology to them without licenses from the Commerce Department, which are generally denied. Cadence will hold a call about its second-quarter financial results at 2 p.m. Pacific Time (2100 GMT) on Monday. Cadence, whose customers include major semiconductor manufacturers and companies such as Nvidia and Qualcomm, is known for its electronic computer-aided design software. Electronic design automation (EDA) tools are key to designing chips and verifying that they are bug-free. NUDT has developed chips to power university supercomputers, including Tianhe-2, once touted as the world's best supercomputer, which the U.S. believes has been used in research on or the development of nuclear explosive devices. Twelve percent of Cadence's revenue came from China last year, down from 17% in 2023, amid regulatory developments and geopolitical tensions.
