Nvidia’s warning to developers about running its CUDA software, a programming toolkit, on third-party graphic processing units has exposed another weak link in China’s quest for chip self-sufficiency.

AMD had hoped to get Washington’s approval to sell to Chinese customers its MI309 processor, which performs at a lower level than what the company sells globally.

While Nvidia’s shares have added 66 per cent this year after more than tripling in 2023, Tesla shares are down more than half from their 2021 peak.

Such a national approach to the artificial intelligence boom stands to drive an expansion of data centres that would need Nvidia’s know-how and hardware.

Hong Kong-listed Meitu’s success stands in stark contrast to how many other firms struggle to monetise their own generative artificial intelligence initiatives.

Shares of the tech giants slipped in late trading on Tuesday after they delivered 2023 results and forecasts for the current quarter, as Wall Street seeks more clarity on AI’s impact on financial performance.

The Hsinchu-based company beat estimates of a quarterly sales decline, as demand from Nvidia and others helped offset sluggish smartphone and laptop chip sales.

Nvidia, whose chip technology dominates in data centres used to create artificial intelligence software, announced new products to help the personal computer industry lure consumers with ‘AI PCs’.

Chinese tech giants Alibaba and Tencent admit to feeling the pinch of the latest US chip export controls, but said they are evaluating ways to minimise the impact on their business growth.

The internet giant was the first to put in orders for Nvidia’s much-coveted H800 chip, which was designed for export to China to comply with earlier US tech restrictions.

The Maia 100 chip will provide Microsoft Azure cloud customers with a new way to develop and run AI programs that generate content.

Computers with chips that have built-in AI capabilities are expected to account for 86 per cent of laptops shipped in China in 2027, according to IDC.

US, South Korean and Dutch semiconductor companies put up booths at CIIE in show of commitment to China market amid escalating US-China chip war.

The earnings of Intel and AMD have offered more evidence a recovery is gathering pace in the PC market, boding well for an industry that had been grappling with a supply glut.

The M3 chip line-up, which marks the first time Apple has moved to advanced 3-nanometer manufacturing technology, can handle graphics processing more efficiently, the company says.

AMD denies huge job cut rumours and says it is optimising China business based on a corporate strategy adjustment.

Nvidia and AMD, which also plans to make chips for PCs with Arm technology, could sell those chips as soon as 2025, sources say.

SK Hynix has surged 67 per cent compared with 24 per cent for Samsung owing to the smaller firm’s Nvidia deal and lead in AI-optimised high-bandwidth memory.

The panic has been fuelled by the actions of Nvidia and some of its major partners on the mainland to remove stock of the in-demand graphics card from their online stores.

Washington’s move signals a further blockade on China’s development of AI chips, according to analysts. To survive, Biren and Moore Threads will now have to double down on their efforts to seek self-sufficiency.

This trend reflects the quandary many Chinese tech firms find themselves in, as they continue to pursue development projects amid stifling export restrictions imposed by the US and its allies.

AMD aims to invest in and build a unified collection of software to power the various chips it makes.

OpenAI is seeking to solve a shortage of expensive AI chips, but it has not yet decided to move ahead with original chip design, sources told Reuters.

The chip designer said in an August 28 filing that its A100 and H100 machine learning chips have new licensing requirements for some regions outside China.

Intel said its “Sierra Forest” chip, to arrive next year, will have 240 per cent better performance per watt, as companies face pressure to reduce energy use.

Tech giants are scrambling to get a piece of the IPO for Arm, which designs chips that are critical to mobile devices, to prevent rivals from gaining an edge.

The semiconductor design firm did not disclose proposed terms for the sale, but it is expected to seek a valuation of US$60 billion to US$70 billion.