Many Chinese semiconductor design companies are partnering with Malaysian firms to assemble high-end chips, mainly graphics processing units (GPUs).
This strategy is a precaution against the potential expansion of U.S. sanctions on China's chip industry.
China is a crucial market for Nvidia Corp (NASDAQ: NVDA), a leading GPU and AI technology producer. Analysts highlighted that Nvidia has a leading 75%-80% position in the rapidly growing accelerator space with next-generation GPUs.
The assembly process, which doesn't violate U.S. restrictions, is distinct from the fabrication of chip wafers, Reuters reports.
The U.S. has been imposing restrictions to limit China's access to high-end GPUs, which are crucial for artificial ...