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Published on
July 15, 2025
5 min read
NVIDIA to Resume H20 AI Chip Export to China as the US Gives License Greenlight
NVIDIA has announced plans to resume AI chip sales to China soon after CEO Jensen Huang held a meeting with US President Donald Trump, Reuters reported. In April, the US government informed the tech giant that it would need a license to export NVIDIA H20 AI chips to China.
The US export policy on AI chips was aimed at restricting Chinese access to America’s most advanced semiconductors due to national security concerns. NVIDIA estimated that the export controls would reduce its annual revenue by up to $15 billion. Nvidia H20 processors are designed to bypass previous export controls on Beijing.
Licencing Greenlight
In recent months, NVIDIA has been lobbying the US government against the chip export controls, saying that the curbs were hindering American tech leadership. In May this year, Huang said the restrictions had already reduced NVIDIA’s AI chip sales to China by close to 50%.
While meeting the President and policy makers in Washington, Huang underscored “NVIDIA’s support for the Administration’s effort to create jobs, strengthen domestic AI infrastructure and onshore manufacturing, and ensure that America leads in AI worldwide,” the company said in a statement posted on its website. NVIDIA also got assurance that export licences will be issued following Huang’s meeting with President Trump.
“The US government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company stated.
Last month, China and the US agreed to an initial trade framework to ease rare-earth export controls and relax chip export curbs. Following this agreement, sources say that Chinese tech companies are scrambling to purchase H20 AI chips.
Analysts suggest that the pause on H20 chip exports to China might reverse NVIDIA’s $5.5 billion inventory charge.
“There’s also a chance Nvidia can reverse some, or all, of the $5.5 billion impairment charge taken in the first quarter, providing a double boost for earnings,” Senior Equity Analyst AT Hargreaves Lansdown Matt Britzman said.
A Surprise Turn
The possible resumption of H20 chips to the Chinese market has surprised many firms.
“The lifting of the H20 ban marks a significant and positive development for Nvidia, which will enable the company to reinforce its leadership in China. The resumption of H20 shipments — alongside the upcoming rollout of new export control-compliant AI chips for the Chinese market — should serve as a fresh growth catalyst in the coming quarters,” Futurum Group Research Director of Semiconductors Ray Wang said.
NVIDIA had already taken measures to comply with US chip export guidelines. Since May, the company has reportedly started working on a new chip for the Chinese market. The new chip would not be as advanced as the H20 chip.
CEO Huang has unveiled a new, fully compliant chip called RTX PRO. According to NVIDIA, the new chip is ideal for smart plants and logistics. It remains unclear whether the compliance is in reference to US guidelines for exporting chips to China.
Preference for NVIDIA Chips
NVIDIA confirmed that CEO Huang has also met Chinese government officials and representatives from the tech industry in recent months. Huang discussed the benefits of AI and explored ways to advance AI research and security during these meetings.
Two months ago, Huang said that curbs on chip exports hurt US companies more than it did Chinese firms. Analysts also warned that the US chip export policy could give China a chance to catch up with American AI chip technology, rather than protect its dominance of the global artificial intelligence industry.
China has been making progress in developing its local AI environment. However, the country still lags behind NVIDIA’s capabilities and those of chip manufacturers like the Taiwan Semiconductor Manufacturing Company (TSMC). Chinese experts view the reversal of H20 AI chip export controls as an opportunity for the Asian country to advance its technology.
“We know from our conversations with clients and market participants that manufacturers in China are preferring these NVIDIA chips,” Lead Economist for China at Oxford Economics Louise Loo said.
Nvidia stocks rose 4.5% on July 15 following the changes in AI chips export controls.
