Foxconn’s annual Technology Day kicked off today at the Nangang Exhibition Center, following the tradition of celebrating founder Terry Gou’s birthday. Although Mr. Gou was not present at the event, NVIDIA CEO Jensen Huang made a surprise appearance, introducing the production version of Model B and highlighting its appeal to young couples.

Jensen Huang announced that he and Foxconn Chairman Young Liu are collaborating to establish an AI Factory. He shared hand-drawn sketches, emphasizing that they are adopting a novel approach to software development, enabling computers to create software based on human preferences and experiences. To ensure a computer’s ability to learn effectively, it must have access to abundant data from which it can derive valuable insights and experiences..

He unveiled the vital role of robust computers in facilitating AI learning. With NVIDIA’s assistance, Foxconn may collect enough data for AI to process shape network models, paving the way for innovative intelligence.

Jensen Huang then emphasized that this groundbreaking system is set to empower any factory or company, with Foxconn’s cutting-edge electric vehicle Model B enabling interaction between drivers and passengers. The AI Factory will offer a wide array of tools, including software solutions, to enhance the overall quality of life.

Chairman Liu reiterated their determination to bring AI Factory into fruition, backed by three core platforms: Smart City, Smart Manufacturing, and Smart EVs, all of which are driven by the innovative AI Factory.

Huang noted that these efforts will all be fueled by AI intelligence, ultimately creating substantial value. In a light-hearted tone, he concluded, “Let’s meet at the night market!”

Adding an interesting twist to the day’s events, Foxconn’s Tech Day featured three Foxconn N7 electric cars in deep blue, light blue, and white. Notably, the white vehicle showcased a handwritten message from Jensen Huang that read, “To Young and my friend at Foxconn, beautiful and amazing EVs! Jensen Huang.”

(Photo credit: Foxconn’s Stream)

The U.S. government tightened its control over exports of advanced computing and semiconductor manufacturing products to China on October 17th. The Entity List now includes more Chinese companies, including two prominent Chinese GPU manufacturers, Biren Technology and Moore Threads. These new restrictions further limit the export of Nvidia A800 and H800 chips.

The new regulations also block chips transferring to China through third-party countries, broadening the export restrictions to include Chinese overseas subsidiaries companies and additional 21 countries.

As reported from TechNews, Nomura Securities are unsurprising to Biren Technology and Moore Threads’ addition to the Entity List. These two chip makers primarily rely on TSMC as their main partner. Due to their limited production capacity, the influence on TSMC is anticipated to be minimal.

Since the U.S. initiated export controls on AI chips in October last year, operations of Biren Technology have continuously been affected. This new development is anticipated to have a relatively limited impact on the Chinese IC design market.

However, the import of ASML’s 1980i DUV model into China may be restricted without U.S. approval. Nomura Securities believe that this could negatively affect the Chinese semiconductor market, potentially causing delays in the expansion plans for 28nm production capacity for some Chinese semiconductor companies. These companies will also likely continue to postpone the purchase of domestic equipment.

Since the import of Nvidia A800, H800, and L40S into China might not be allowed, Nomura Securities consider this unfavorable news for the market. Nvidia may soon introduce new versions to comply with the new regulations. In this scenario, Huawei, with its capacity to design and manufacture advanced chips within China, may ultimately emerge as the most significant beneficiary in the Chinese market, as most Chinese GPU companies are already under sanctions.

The updated U.S. export restrictions also imply that more foreign manufacturers of AI chips will need to adjust their product specifications to meet the new requirements.

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• Biden Tightens Export Restrictions to China, Nvidia’s Chips Impacted Most

(Image: Flickr)

According to TechNews on October 18th, The Biden administration has once again tightened restrictions on chip exports to China, and this includes Nvidia’s advanced AI chips.

In a recent press release, the U.S. government announced a renewed restrictions on exports of advanced computing and semiconductor manufacturing products to China. Notably, this includes Nvidia’s cutting-edge AI chips, which will be impacted and could potentially face restrictions on sales to China. The motive behind this action by the Biden administration is to prevent China from bolstering its military capabilities by accessing advanced U.S. technology.

Apart from Nvidia, chip products from industry giants like Intel and AMD might also encounter hurdles in their journey to China. In addition to the actual chips, products from semiconductor equipment manufacturers such as Lam Research, KLA, and Applied Materials may also face increased limitations when destined for China.

These new restrictions, as revealed by the U.S. government, are even more stringent than previous limitations on chip exports. Nvidia’s A800 and H800 chips are among those falling under these tightened restrictions. As a direct consequence, Nvidia’s stock price took a sharp dip, decreasing by nearly 5% on Tuesday.

Following the recent U.S. government ban, Nvidia’s spokesperson, Ken Brown, promptly assured that the company strictly adheres to all relevant regulations. Nvidia is committed to supporting a wide array of products across diverse industries. Given the global demand for Nvidia’s offerings, it’s anticipated that these restrictions will have no immediate, substantial impact on Nvidia’s financial performance.

In a bid to curtail China’s potential access to U.S. chips through third-party channels, these limitations now extend to include the overseas subsidiaries of Chinese firms. Furthermore, the updated regulations expand the list of countries subject to additional export license requirements for advanced chips to over 40 more nations. This expansion is driven by the concern that these countries might transfer chips to China and their presence on the U.S. arms embargo list.

Notably, the interim final rule revises ECCN 3A090 and 4A090 and enforces extra licensing prerequisites for exports to China and the D1, D4, and D5 country groups. These groups include nations like Saudi Arabia, the United Arab Emirates, and Vietnam, though Israel remains excluded.

To safeguard against China’s potential acquisition of U.S. chips through alternative routes, these restrictions have been extended to encompass overseas subsidiaries of Chinese corporations and involve 21 other countries.

However, reports from foreign media indicating that this new U.S. regulation will exempt certain consumer chips used in laptops, smartphones, and gaming consoles. Nonetheless, some chips may still necessitate prior notification and licensing from the U.S. government to be exported.

It’s noteworthy that the U.S. government’s list of newly restricted entities includes two prominent local GPU companies, Moore Thread Technology and Biren Technology. Following the U.S. ban, both firms promptly issued statements of strong protest.

Moore Thread expressed their strong objection, saying, “We are deeply concerned about the inclusion of Moore Thread in the Entity List by the U.S. Department of Commerce. Our company is actively engaging with various stakeholders, and we are assessing the impact of this development.”

Biren Technology also issued a statement, stating, “We vehemently oppose the U.S. Department of Commerce’s actions and will proactively appeal to relevant U.S. government departments, urging them to reconsider their stance.”
(Image: Nvidia)

(Data: US BIS)

Reports indicate that the United States is poised to unveil an updated set of restrictions on chip exports to China this week. Beyond the previously reported tightening measures on AI chips and equipment exports, these new regulations are expected to restrict the supply to chip design companies. The aim is to enhance control over the sale of graphic chips and advanced chip manufacturing equipment for AI applications to Chinese enterprises, with the possibility of adding Chinese chip design companies to the list of restricted entities.

As reported from Reuters and Bloomberg, U.S. authorities will demand that overseas manufacturers obtain licenses to fulfill orders from these companies and subject Chinese firms attempting to circumvent restrictions by using third-party countries for shipping to additional inspections. While the new regulations are expected to be announced this week, the potential for delays should not be ruled out.

In October 2022, the United States declared export restrictions on advanced semiconductor processes and chip manufacturing equipment bound for China, as a measure to prevent the development of cutting-edge technology that could potentially bolster military capabilities for geopolitical adversaries.

Following the implementation of these export bans, U.S. tech companies, such as Nvidia and Applied Materials, incurred significant losses in orders. For example, Nvidia was unable to sell its two most advanced AI chips to Chinese companies, leading to the introduction of a “downgraded” chip, the H800, designed specifically for the Chinese market to bypass existing regulations.

U.S. officials have revealed plans to introduce new guidelines for AI chips, including the restriction of certain advanced data center AI chips that currently do not fall under any limitations. They are considering the removal of “bandwidth parameters” to prevent the entry of AI chips perceived as too powerful into China.

However, they plan to introduce expanded guidelines for chip control, which may reduce communication speeds among AI chips. Slower communication could increase the complexity and cost of AI development, particularly when many chips need to be connected for training large AI models. Additionally, the U.S. will introduce “performance density parameters” to guard against potential future workarounds by companies.

Reports suggest that the United States is looking to prohibit the export of Nvidia’s H800 chip, a “downgraded” chip designed for the Chinese market to legally bypass existing regulations.

The Biden administration is also preparing for additional scrutiny of Chinese companies attempting to modify shipping and manufacturing locations in a bid to evade specific country restrictions. This rule will continue to limit sales of specific chips to Chinese companies through overseas subsidiaries and related entities, requiring authorization before exporting restricted technology to countries that could serve as intermediaries.

Furthermore, the progress in Huawei’s new smartphones has prompted the U.S. authorities to tighten control further, initiating investigations for actions against Huawei or SMIC that will be carried out independently of the new export control regulations.

In response to the anticipated expansion of U.S. export controls on Chinese companies, Chinese Foreign Ministry Spokesperson Mao Ning stated, “We have made our position clear on US restrictions of chip exports to China. The US needs to stop politicizing and weaponizing trade and tech issues and stop destabilizing global industrial and supply chains. We will closely follow the developments and firmly safeguard our rights and interests.”

(Image: Nvidia)

As reported by CNA on October 16th, Market speculations rise as NVIDIA CEO Jensen Huang’s visit to Taiwan for Foxconn Technology Day draws attention. Industry sources suggest potential collaborations in server and electric vehicle sectors.

Jensen Huang is set to visit Taiwan for Foxconn Technology Day, continuing discussions about possible partnerships between the tech giants. Industry experts have noted that the collaboration between NVIDIA and Foxconn extends primarily into the server sector, but there may also be untapped collaboration opportunities in the electric vehicle domain.

The market has been abuzz with speculation about Jensen Huang’s visit, following his visit to Taiwan in May. It is anticipated that he will participate in Foxconn Technology Day scheduled for October 18. Foxconn, the world’s largest contract electronics manufacturer, has remained tight-lipped about Huang’s visit. Nevertheless, the NVIDIA CEO has already arrived in Taiwan and was seen enjoying the local night markets, happily taking photos with fans.

Regarding Jensen Huang’s visit and the possible partnership with Foxconn, Dr. Arisa Liu , Research Fellow and Director of the Industrial Economic Information Database at Taiwan Institute of Economic Research (TIER), pointed out that while the primary focus of the collaboration between NVIDIA and Foxconn lies in the server sector, Foxconn is aggressively expanding its electric vehicle (EV) ventures, creating space for potential cooperation between the two tech giants in the EV field.

Dr. Liu emphasized that the recent negative press regarding artificial intelligence (AI) has raised concerns about the future growth prospects of AI. Additionally, NVIDIA is currently under investigation by the European Union for antitrust issues. Thus, Huang’s visit will be closely observed to determine whether it can help bolster the momentum in the supply chain.

The partnership between Foxconn and NVIDIA dates back to several years, with Jensen Huang holding a private meeting with Foxconn Chairman Young Liu during his visit to Taiwan in May. Last year, Foxconn’s subsidiary, Industrial Internet (IIoT) company Foxconn Industrial Internet (FII), announced the adoption of NVIDIA’s Grace CPU system for high-performance data centers and edge computing applications. FII introduced server systems powered by NVIDIA’s Grace CPU superchip, catering to the growing demand for efficient data centers.

In January of this year, Foxconn and NVIDIA announced a strategic partnership to collaborate on automotive and autonomous driving platforms. As part of the agreement, Foxconn became NVIDIA’s first-tier manufacturer, responsible for producing electronic control units (ECUs) based on NVIDIA’s DRIVE Orin system-on-a-chip (SoC) design for the global automotive market.

The tech industry will be closely monitoring Jensen Huang’s visit to Taiwan and the Foxconn Technology Day event for further insights into the evolving collaborations and strategic directions between Foxconn and NVIDIA.

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(Image: NVIDIA)