Nvidia announced Tuesday that it expects to resume shipments of its H20 graphics processing units to China, after receiving assurances from the U.S. government that licenses for export will be approved.

The company said the chips had been halted from sale in April following new licensing requirements from Washington, despite being designed to bypass earlier export restrictions.

“The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company stated.

Export Curbs Had Cut Nvidia’s Market Share in China

Nvidia CEO Jensen Huang had stepped up lobbying efforts in recent months, stating that chip export restrictions were hindering U.S. tech leadership.

In May, Huang said these controls had already cut Nvidia’s market share in China by nearly half.

The company confirmed that Huang recently met with U.S. President Donald Trump, during which he reaffirmed Nvidia’s support for job creation, onshoring initiatives, and the goal of maintaining U.S. leadership in AI.

New RTX PRO GPU Unveiled Amid Regulatory Shift

Nvidia introduced a new graphics chip called RTX PRO, described as “fully compliant.” The company said it is ideal for smart factories and logistics.

It did not confirm whether the chip meets specific guidelines for exports to China.

Reports since May indicated Nvidia had been developing a less advanced AI chip tailored for China’s regulatory environment.

The expected return of the H20 came as a surprise to some industry observers.

“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,” said Ray Wang, research director at Futurum Group.

“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,” he added.

U.S.–China Trade Talks Ease Path for AI Chip Sales

Washington and Beijing last month reached a preliminary trade framework that included China relaxing rare-earth export controls and the U.S. easing some technology export restrictions.

The H20 export control shift came shortly after these talks. When the U.S. restrictions began in April, industry analysts believed it might benefit domestic alternatives such as Huawei.

However, experts noted that China’s AI chip capabilities still lag behind companies like Nvidia and Taiwan Semiconductor Manufacturing Co.

Huang Meets with Chinese Officials on AI Development

On Tuesday, Nvidia confirmed that Huang was in China, meeting with government and industry officials.

Discussions focused on the benefits of artificial intelligence and strategies for advancing secure AI research.

Louise Loo, lead economist for China at Oxford Economics, said the move could benefit Chinese manufacturers as they work toward more advanced domestic technologies.

“We know from our conversations with clients and market participants that manufacturers in China are preferring these Nvidia chips,” Loo told CNBC.

PHOTO: UNSPLASH

This article was created with AI assistance.