The US is softening its export restrictions to China. In early July, the administration led by Donald Trump allowed Nvidia to sell Your H20 GPU To its Chinese clients. At the time This movement surprised us because it clearly indicated that an obvious change was consolidating in the US strategy in front of the nation governed by Xi Jinping. According to the newspaper Financial Times This relaxation of export restrictions to China seeks to “avoid damaging trade negotiations with Beijing.”
And it is presumably this week US and China will resume their negotiation to establish the rules that will resolve their future commercial interests. As expected, this rudder of the US administration favors the interests of Nvidia, AMD, Broadcom and other companies, but not all members of the Trump administration support this initiative. According to Financial Timessome White House advisors are pressing the government to maintain their blockade to China.
Nvidia needs TSMC to manufacture 300,000 H20 chips for China
Donald Trump wants to meet “face to face” with Xi Jinping before he ends this year, again according to the information he has Financial Times. The intention of the US president is to file roughness with his Chinese counterpart with the purpose of promoting negotiation in commercial matters that both countries have maintained for many months. Just a few hours ago they have gathered in Stockholm (Sweden) Scott Besent, the US Treasury Secretary, and He Lifeng, the Vice Prime Minister of China, so it is evident that the negotiation follows its course.
After many months of uncertainty the current scenario clearly benefits Nvidia. The company directed by Jensen Huang saw its survival in China threatened by The sanctions approved by the Department of Commerce from the US, but This volantazo changes everything. And its protagonist is the chip for artificial intelligence (AI) H20. The reception that Chinese clients of Nvidia initially gave to this GPU was very good despite the fact that the capabilities of this chip are clearly inferior to those of the other proposals for this company.
After many months of uncertainty the current scenario clearly benefits Nvidia
In fact, initially the Department of Commerce allowed its sale in China because this integrated circuit met the restrictions it had imposed. And despite its limitations its sales in China grew by 50% quarter to quarter since it reached this market in mid -2024. Everything was complicated for Nvidia in the middle of last April. And is that the US Department of Commerce imposed new restrictions To the export to China of the H20 GPU, which in practice caused this chip to stop reaching the Chinese clients of this company.
This news sank Nvidia’s actions by 6% because it could no longer address the commitments linked to the H20 GPU it had acquired. Among the Chinese customers who had bought it Large amounts of this GPUand presumably planned to continue doing it, were Tencent, Alibaba or Bytedance. Finally Nvidia has achieved That the Department of Commerce review its regulation and allow you to sell the H20 GPU in China again.
Surprisingly this scenario has put Nvidia in trouble. And, once again, the reception of the H20 GPU in China is being so good that this American company has run out of units. According to ReutersNvidia has commissioned TSMC for the manufacture of no less than 300,000 units of this chip to be able to respond to the current demand from China. Blessed problem. However, the company’s engineers have been working on A new GPU with Blackwell microarchitecture The latest generation that is intended to occupy in China the place of the H20 chip.
In fact, presumably TSMC began in June the production of The B30 GPUwhich is how it seems to be called. What we know at the moment is that this chip for AI will be less capable than the H20 GPU, as is logical, and also that its price will move Between 6,500 and $ 8,000. For domestic users it is a lot of money, but in the field of professional GPUs for AI it is a moderate price. In fact, the H20 GPU costs between $ 10,000 and $ 12,000.
Image | Gage Skidmore | Wikipedia
More information | Financial Times | Reuters
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