Nvidia said Tuesday that she hopes to resume sales of her general processing units H20 to China, in a great victory for the company that has suffered US export curbs.
The United States government in April told NVIDIA that it would require a license to sell chips to China, the company said in a presentation, effectively stopping its sales. The H20 chips had been specifically designed to avoid previous export controls in Beijing.
“The United States government has assured Nvidia to grant licenses, and Nvidia hopes to start deliveries soon,” the company said in a statement on Tuesday.
The CEO of Nvidia, Jensen Huang, in recent months has increased its lobbying against export controls, arguing that they inhibited US technological leadership. In May, Huang said that chips restrictions had already reduced Nvidia market share in China almost halfway.
The potential change in the United States position follows a meeting between Huang and the president of the United States, Donald Trump, last week. During the conversations, Huang had reaffirmed Nvidia’s support for the creation of the employment of the administration and wavefront, as well as the objective that the United States led in the global AI, the company said.
Washington and Beijing last month agreed a preliminary commercial framework that allowed rare earth export controls by China and the flexibility of technological export curbs by the United States
Huang also announced a new “fully compatible” GPU, RTX Pro, saying it was ideal for smart and logistics factories. It was not clear if the reference was to the GPU that met the guidelines for exports to China.
Since May, the reports had indicated that Nvidia was working on a new AI chip for the China market, which would be less advanced than the H20.
However, the possible resumption of H20 Chips to China is a surprise, Ray Wang, director of semiconductor research, supply chain and emerging technology in Futurum Group, told CNBC.
“The uprising of the prohibition of H20 marks significant and positive development for NVIDIA, which will allow the company to strengthen its leadership in China,” Wang said.
“The resumption of H20 shipments, together with the next launch of new chips compatible with exports control for the Chinese market, should serve as a new growth catalyst in the next quarters,” he added.
Nvidia shares increased 4.5% on the Robinhood negotiation platform from 12:20 am et.
On Tuesday, Nvidia also confirmed that Huang was in China and had met with government and industry officials to discuss the benefits of AI and ways for researchers to move forward to the safe and safe AI.
When the export controls in the H20 chip established in April, some chips experts expected it to be a blessing for the local Nvidia alternatives such as Huawei.
However, while the Chip’s environment of China has been progressing, it is still behind the abilities of the foundations of Nvidia and Chip as Taiwan Semiconductor Manufacturing Co.
Speaking to “The China Connection” by CNBC on Tuesday, Louise Loo, China’s main economist in Oxford Economics, said that a reversal of H20 export controls would buy more time from Chinese manufacturers while waiting for progress in China’s indigenous technology.
“We know our conversations with customers and market participants, that manufacturers in China prefer these Nvidia chips,” he added.
