China is a very important market for Nvidia. During the last fiscal year, which expired on January 26, 2025, this Asian country represented approximately 13% of total income of the company led by Jensen Huang with a figure of some 17,000 million dollars. In Chinese practice it is the third best client of this company only behind the US and Taiwan, but The steps that the Trump administration is taking They threaten their survival in this market.
In the middle of last April the US Department of Commerce imposed new restrictions to the export to China of the GPU for artificial intelligence (AI) H20what in practice caused this chip to stop arriving at the Chinese clients of this company. After weeks of negotiations, and even several “face to face” between Donald Trump and Jensen Huang, Nvidia has made the Department of Commerce allow her to re -give her Chinese clients her H20 chip. However, this permission has not left for free: hereinafter will deliver to the US government 15% of income which will obtain in China for the sale of this and other GPU.
AMD has run this same luck, so there is no doubt that this Trump administration strategy establishes an unpublished precedent by forcing some US companies to deliver to the State a percentage of their sales income in another country. Nvidia has been dealing with Sale prohibitions in China Of most of his chips for AI, and has now been forced to fit this new blow. The US government ensures that he is protecting his interests and the security of the nation, but along the way he is also promoting that China develop their own technology at a vertigo speed. It is a full -fledged form of Autoboicot.
The loss of confidence of the Chinese government has fired Nvidia alarms
The future of Nvidia in China is largely in the hands of the administration of the cyberspace of China, known as CAC for its English denomination (Cyberspace Administration of China). This institution is the main Internet regulatory body in China and is thoroughly investigating NVIDIA H20 GPU Because it suspects that this chip could incorporate a back door of difficult location by Chinese experts. If so, the possibility of China to use this GPU could be possible.
David reber Jr., Nvidia Security Director, published last week An article in the blog of this company entitled “There are no rear doors in the Nvidia chips. There are no deactivation switches. There are no spy software” in an obvious attempt to defend the company’s reputation and appease the growing distrust to which he faces in China. There is a lot at stake. If the final resolution of the CAC turns out to be unfavorable with all probability NVIDIA will lose a good part of the income currently obtained in this country.
If the final resolution of the CAC turns out to be unfavorable with all probability NVIDIA will lose a good part of the income obtained in China
However, this is not all. Whatever the CAC verdict is a fact that the Chinese government He is urging Chinese companies that are dedicated to the development of large models of AI to use in their servers integrated circuits of Chinese origin. In this scenario their best bazas are now Huawei and Moore Threads. The first of these companies has lists its own GPU for iathe chips ascend AI, for more than five years. During this period of time it has been refining them and increasing their abilities with the purpose of matching or even overcoming the performance of the chips A100 and H100 of Nvidia.
His most ambitious proposal right now is the chip Ascend 910dwhich seeks to overcome the performance of the H100 GPU. However, this Chinese company has also recently presented its chip Ascend 920a solution that is clearly destined to occupy in the Chinese market The H20 GPU space. This proposal will enter large -scale production during the second half of 2025 using 6 NM integration technology that have presumably developed elbow with Huawei elbow and SMIC.
On the other hand, Moore Threads He has developed several GPU for AI applications that, on paper, rivaize some of the advanced solutions that have placed in the Nvidia, AMD or Huawei market. The MTT S4000 and MTT S3000 cards are its most interesting proposals right now, although, curiously, in its porpholio the MTT S80 card, a proposal for games and content creation that, according to Moore Threads itself, has a 14.4 TFLOPS calculation capacity also appears in Floating Coma operations of simple precision. It doesn’t impress, but it’s not bad at all.
Image | Gage Skidmore | Wikipedia
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