Nvidia, the US-based technology giant, has announced that it will resume sales of its H20 artificial intelligence chips to China. This decision follows the US government’s commitment to remove licensing restrictions that had halted exports of these products. The H20 chips are a less advanced variant of Nvidia’s leading AI processing units, specifically developed for the Chinese market.
In a statement released on Tuesday, Nvidia confirmed it is “filing applications to sell the Nvidia H20 GPU again.” The company expressed optimism, stating, “The US government has assured Nvidia that licences will be granted, and Nvidia hopes to start deliveries soon.” Jensen Huang, Nvidia’s CEO, noted in a video aired by Chinese state broadcaster CCTV that the US government has approved the filing of licences for shipping the H20 chips. He expressed enthusiasm about the upcoming sales, saying, “I’m looking forward to shipping H20s very soon, and so I’m very happy with that very, very good news.”
Huang will also participate in the 3rd China International Supply Chain Expo on July 16, 2023, as reported by CCTV. This marks his third visit to China this year, underscoring the importance of the Chinese market for Nvidia. Despite recent challenges due to US export restrictions, Nvidia remains committed to its operations in China, where it faces increasing competition from local companies such as Huawei.
In previous discussions, Huang conveyed to He Lifeng, China’s Vice Premier, his positive outlook on the Chinese economy. According to the state news agency Xinhua, Huang expressed his willingness to deepen Nvidia’s investments in China and contribute to US-China trade cooperation. The tightening of US export regulations comes at a time when China’s economy is experiencing pressure, with consumer spending slowing and ongoing issues in the property sector impacting growth.
Data released on Tuesday indicated that China’s economy grew by 5.2 percent in the second quarter of 2023, defying expectations amidst a challenging trade environment. President Xi Jinping has emphasized the need for China to enhance its self-reliance, especially as external uncertainties increase.
Earlier this year, reports suggested that Nvidia was exploring the establishment of a research and development centre in Shanghai. However, neither Nvidia nor local authorities confirmed this initiative at the time. The renewed sales of the H20 chips may aid Nvidia in regaining a foothold in the competitive Chinese market, as it navigates the complexities of international trade relations.
