That the US government let him sell his H20 chip again in China

If the US government maintains the prohibition of sale of avant -garde chips to artificial intelligence (AI) To China, Nvidia will enter this year 15,000 million dollars less. This is What he holds The company led by Jensen Huang, and is certainly the argument that this executive resorted during his meeting with Donald Trump last week to expose The complex scenario facing Nvidia. And it worked. May sell Your H20 GPU To his Chinese clients very soon.

During the last fiscal year, which expired on January 26, 2025, China represented approximately 13% of total income of Nvidia with a figure of about 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, SANCTIONS TO CHINA which is deploying the US government threatens Nvidia’s survival in this Asian country. Currently this company cannot sell its chips to its Chinese clients for the most advanced.

Nvidia is determined to survive in the Chinese market at any price

The reception that the Chinese clients of Nvidia initially gave to the GPU H20 was very good despite the fact that the capabilities of this chip are clearly lower than those of the other proposals for 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 their limitations their 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 Nvidia’s shares sank 6% in the bag because I could no longer attend the commitments linked to the H20 GPU that it had acquired.

Among the Chinese clients who had bought great amounts of this GPU, and who presumably planned to continue doing it, were Tencent, Alibaba or Bytedance. Finally, as we have anticipated in the holder and the first paragraph of this article, Nvidia has made the Department of Commerce review its regulation and allow you to sell the H20 GPU in China again. “The US government has assured us that licenses will be granted. We hope to start deliveries soon,” Pray a statement from Nvidia.

However, this is not all. And in June the Taiwanese manufacturer of TSMC semiconductors, The Major on the Planetbegan the manufacture of a new GPU for NVIDIA with the latest generation Blackwell microarchitecture. Presumably this is the chip with which Nvidia aspires to maintain her domain in the Chinese market. Of course, before being able to send these GPU to China, the company led by Jensen Huang will have to receive the approval of the US Department of Commerce.

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, so it is evident that Nvidia wants to protect the competitiveness of this chip to prevent Huawei, Moore Threads and other Chinese companies and other Chinese companies to snatch a juicy portion of this market.

Image | Nvidia

More information | Reuters

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