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President Donald Trump’s administration has barred Nvidia Corp from selling its H20 chip to China, an escalation of Washington’s tech battle with Beijing that will cost the company billions of dollars and hamstring a product line it explicitly designed to comply with previous US curbs.
The government informed Nvidia on Monday that the H20 would require a license to export to China “for the indefinite future.” The new rules address Washington’s concerns that “the covered products may be used in, or diverted to, a supercomputer in China,” the company said in a filing Tuesday. Nvidia warned it will report about $5.5 billion in writedowns during the current quarter, tied to inventory and commitments for the chip.
Its shares slid about 6% in late trading following the announcement, leading a broad selloff in chip firms from the US to Japan. Advanced Micro Devices Inc., which competes with Nvidia in the AI chip market, slumped as well.
The latest rules for Nvidia are a sign the Trump administration will stay the course on the US government’s approach to Chinese tech development.
DeepSeek’s emergence in January helped crystallise concerns about the country’s rapid advances in AI in particular, considered a key long-term geopolitical battleground.
In the local semiconductor arena, Huawei Technologies Co’s AI accelerators are regarded as the closest parallel to Nvidia’s and AMD’s chips, though they still lag significantly in terms of performance. – Bloomberg
Online Reporter