Nvidia Resumes H20 AI Chip Exports to China

Nvidia has been allowed to resume exports of its H20 artificial intelligence (AI) chip to China.

The Financial Times (FT) reported on August 8 (local time) that the Bureau of Industry and Security, which oversees export controls at the U.S. Department of Commerce, has begun issuing export licenses to Nvidia.

Jensen Huang, CEO of Nvidia, is answering reporters' questions at the 'Global Media Q&A' event held on the 21st at the Mandarin Oriental Hotel in Taipei. Photo by Yonhap News

Previously, the Donald Trump administration had banned the export of the H20 chip, which Nvidia had designed with reduced performance for the Chinese market, in April.

However, the White House reversed its position last month and decided to allow exports to resume. It was confirmed that the resumption of H20 chip exports was also used as a bargaining chip during discussions on restarting China's rare earth exports.

The White House cited concerns that China could surpass the United States in the chip race by developing its own AI chips as the reason for allowing the resumption of H20 chip exports.

In fact, Nvidia's market share in China dropped from 95% to 50% over four years.

However, for three weeks, the Department of Commerce delayed issuing export licenses for the H20 chip, so actual sales to China did not take place.

Accordingly, Jensen Huang, CEO of Nvidia, recently visited the White House and met with President Trump. It is reported that two days after this meeting, the Department of Commerce began issuing export licenses.

Previously, CEO Huang had publicly criticized the Trump administration's controls on H20 chip exports, calling the export restrictions "a failed policy that only makes Chinese companies stronger."

Last year, Nvidia generated approximately $17 billion in revenue from China, accounting for 14% of the company's total sales. However, it is estimated that the H20 export controls resulted in billions of dollars in losses.