For Nvidia losing the Chinese market is not an option. During the last fiscal year, which expired on January 26, 2025, China represented approximately 13% of total income of the company led by Jensen Huang with a figure of some 17,000 million dollars. In practice, the country governed by Xi Jinping is the third best client of this company only behind the US and Taiwan.
However, the sanctions to China that are deploying the US government threatens Nvidia’s survival in this Asian country. Currently this company cannot sell its chips to its Chinese clients to artificial intelligence (IA) more advanced. And in the middle of last April the US Department of Commerce imposed new export restrictions on China from The H20 GPU of Nvidia.
The tuning of a trimmed review of the H20 GPU is underway
The reception they have given to the GPU H20 The Chinese clients of Nvidia has been very good despite the fact that the capabilities of this chip are clearly lower than those of the other proposals for the this company. 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 50% quarter to quarter have grown Since he arrived in this market in mid -2024.
The Nvidia Plan requires a cut review of the H20 GPU that satisfies the restrictions imposed by the US Department of Commerce
Anyway, this time of bonanza is over. The restrictions of the Department of Commerce in practice prevent Nvidia Deliver the H20 GPU to its Chinese clientsbut this company does not give up. At the beginning of this week We explain to you that several reliable media had collected that His engineers are working on new GPU for AI expressly adapted to the country’s market led by Xi Jinping.
Now we know something else. And is that according to Reuters The Nvidia Plan requires tuning a trimmed review of the H20 GPU that satisfies the restrictions imposed by the US Department of Commerce. The surprising thing is that this project seeks to cut a chip that is already a cut version of other NVIDIA GPUs. And it is not clear that with this limited benefits this trimmed GPU H20 is interesting for companies that have bought the original H20 chip from NVIDIA.
Among them are no less than three giants from China: Alibaba, Tencent and Bytedance. However, Nvidia faces one more challenge: Huawei’s competition. And this last company is reinforcing its position in China to take advantage of the hole that Nvidia is leaving in the market because of US sanctions. During the second half of 2025 will manufacture the GPU Ascend 920 on a large scalewhich is clearly destined to occupy in the Chinese market the gaps that the GPU H20 is going to leave. And, in addition, it is about to start the chip test phase Ascend 910dwho seeks to overcome the performance of the chip NVIDIA H100.
Image | Nvidia
More information | Reuters
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