Nvidia Has A Secret Plan After The H20 Chip Is Banned In China!
JAKARTA Nvidia CEO Jensen Huang revealed that his company will not issue a new version of the flaring chip series for the Chinese market after the US government imposed restrictions on sales of its H20 chip there. This was said by Huang on Saturday, May 17, 2025, in an interview broadcast live by the news network Formosa TV on Taiwan.
Huang stated, when asked about what chips will come after the H20 for China, "It's not my job because it's no longer possible to modify the fire anymore," Huang said.
Since the US government imposed new restrictions on exports of the H20 chip to China, which is the only legitimate AI chip to sell in the country, Nvidia is now evaluating a way to tackle China's market. Huang, who has so far stated that China is critical to Nvidia's growth, made a visit to China as soon as these new restrictions were imposed.
Previous reports stated that Nvidia plans to release a downgrade version of the H20 chip for the Chinese market in the next two months. This step was taken to strengthen sales in the country, where Nvidia has lost its market share to domestic competitors such as Huawei.
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US AI Export Regulations
In January 2025, US President Joe Biden's administration issued a framework for limiting AI chip exports to most countries, affecting technology companies like Nvidia. Huang himself argues that the previously implemented AI export regulations are a wrong decision, and should focus more on maximizing the spread of US technology globally.
On the other hand, former President Donald Trump has expressed his intention to cancel these rules if re-elected.
China is a very important market for Nvidia, with revenue contributions of 17 billion US dollars (Rp280 trillion) for the fiscal year ending January 26, 2025, which accounts for about 13% of the company's total sales. This limitation of H20 chip sales is a big challenge for Nvidia, which has to find solutions to maintain their market share in the country, given the intense competition with domestic companies.
With this situation, Nvidia is now faced with a huge challenge to maintain its position in the Chinese market, which has become an important market for its growth.