Nvidia announces the return of its chips to China
NVDA
Published on 07/15/2025 at 06:49
By Nicolas Thomas
Nvidia has announced its intention to relaunch the marketing of its H20 artificial intelligence chip in China, just days after its CEO met with US President Donald Trump in Washington, and while Jensen Huang is currently visiting Beijing.
Nvidia's AI chips have been at the heart of US restrictions on exports of sensitive technologies for several months, aimed at preventing the most advanced semiconductors from falling into the hands of the Chinese military. These measures have forced the company to revise its revenue forecasts downwards, with an estimated shortfall of $15bn. The US tech giant had announced that it would no longer include China in its future estimates.
In a statement released on Monday evening, Nvidia said it had taken steps with the US government to obtain the necessary licenses to resume sales of the H20 chip, which was designed specifically for the Chinese market. "The US government has assured Nvidia that the licenses will be granted, and Nvidia hopes to begin shipments soon," the company said.
The company, which had strongly criticized the restrictions imposed in April by the Trump administration, also announced that it has developed a new chip that complies with US export rules: the RTX Pro GPU. This model is intended for industrial uses such as logistics and digital twins, particularly in smart factories.
Nvidia's CEO, who is expected to attend a supply chain trade show in Beijing on Wednesday, emphasized China's strategic importance in an interview with state television CCTV: "The Chinese market is huge, dynamic and highly innovative. It is also home to many AI researchers. It is therefore crucial for US companies to establish a strong presence there."
At the same time, political pressure remains high in the United States. Last week, two senators, one Democrat and one Republican, urged Jensen Huang to avoid any meetings with entities linked to the Chinese military or on the US restricted export list.
The H20 chip was developed in late 2023 to comply with existing US sanctions, but its ban in April forced Nvidia to take a $5.5bn charge on its inventory. Huang also said he had to forego $15bn in sales.
The resumption of sales comes amid relative calm between Beijing and Washington, marked by China's easing of restrictions on rare earths and the US resuming the supply of chip design software to China.
But caution remains the watchword. "Uncertainty between the US and China remains high," warns He Hui, research director at Omdia. "Even with a temporary lifting of the ban on H20, Chinese companies will continue to diversify their suppliers to secure their supply chains."
In parallel with the H20, Nvidia has confirmed the development of an additional chip for the Chinese market: the RTX Pro 6000D. Less powerful and easier to produce, it is expected to be marketed at a much lower price than the H20, according to information from Reuters in May. This new chip belongs to the latest generation of Blackwell architecture.
China accounted for $17bn in revenue for Nvidia in its fiscal year ending January 26, representing 13% of the group's total revenue. Jensen Huang has always maintained that the country is a "critical" market for the company's growth.
This new chip, like the return of the H20, will have to face a Chinese market that has been profoundly transformed, notably by the arrival of a major competitor: Huawei. As we explained in the article "Huawei, Nvidia's Chinese nightmare," the Chinese giant's latest Ascend chip and CloudMatrix servers are tailor-made to meet the needs of the local market. Nvidia will therefore have to regain ground in a market that has already changed significantly in just a few months.
Nicolas Thomas