Samsung, SK Hynix: "The Large Chinese Market Has Reopened"

Nvidia H20 Export to China Approved
Domestic Semiconductor Industry "Welcomes" the Move
Expectations Rise for Recovery in HBM Demand

After the Trump administration in the United States allowed exports of certain artificial intelligence (AI) semiconductors from Nvidia and AMD to China, the domestic semiconductor industry expressed optimism, saying, "The large Chinese market has reopened." Samsung Electronics and SK Hynix, which supply high-bandwidth memory (HBM), are closely watching the possibility of a rebound in performance due to recovering demand from China.

According to the industry on July 16, Jensen Huang, CEO of Nvidia, stated in an interview with China Central Television (CCTV) the previous day that the Trump administration had approved exports of the company's H20 AI semiconductor to China. On the same day, it was also reported that the export ban on AMD's MI308 chip had been lifted.

The H20 is a product exclusively for China. The Biden administration first restricted its export in October last year, and then the Trump administration imposed a complete ban in April this year. After about three months, exports have now resumed.

The domestic industry is hopeful that this measure could revive demand for memory semiconductors. Samsung Electronics and SK Hynix supply HBM for AI semiconductors, and it is reported that Samsung Electronics, in particular, is currently supplying some HBM3 for the H20 chip, which is now permitted for export.

An industry official commented, "The reopening of the large Chinese market is a positive signal for the entire industry," and added, "There are significant opportunities due to the expansion of the semiconductor demand base." Another official noted, "Although this measure is limited to some lower-spec products, the demand for AI semiconductors is so large that even restricted exports will have a considerable impact on the industry."

Samsung Electronics previously announced in its preliminary second-quarter results that the memory division had underperformed due to the effects of export restrictions and tariffs on China. With the resumption of exports, improvement in third-quarter results is now expected. SK Hynix is also projected to achieve strong results in its high-value-added HBM business if the recovery in AI semiconductor demand gains momentum.

Nvidia is also revising its product strategy to respond to the Chinese market. According to foreign media and industry sources, Nvidia has recently begun mass production of a separately designed "Blackwell" chip for export to China. This product is adjusted to operate without the latest HBM or advanced packaging, allowing it to target the market while avoiding regulations. In addition, there are considerations to replace the HBM installed in the H20 from the current HBM3 to the next-generation HBM3E to increase prices, and it is being discussed that other AI semiconductor products may also be sequentially introduced to the Chinese market in the future. The industry is monitoring whether the U.S. government's easing of export regulations is a temporary measure or if it will be extended to high-performance products in the future. As AI semiconductor export restrictions and relaxations are repeated, there are forecasts that this could affect the supply and demand, as well as the price trends, of memory semiconductors.