Nvidia faces production hurdles in China H20 restart- The Information

Published 21/07/2025, 04:30
© Reuters

Investing.com-- NVIDIA Corporation (NASDAQ:NVDA) told its Chinese customers that it has limited supplies of the H20 chip, the most powerful artificial intelligence chip it is allowed to sell in the country, The Information reported on Saturday. 

Nvidia said last week that the U.S. will issue new licenses allowing the company to resume sales of the H20 in China, although Washington was yet to do so. 

The company told its Chinese customers that its stocks of the H20 were limited, and that it did not plan to restart production of the chip, at least for now, The Information reported.

Nvidia, until April this year, was allowed to sell the H20 to China under Biden-era export restrictions against China. But the Donald Trump administration tightened these restrictions amid a bitter trade war with Beijing earlier this year. 

Still, Washington and Beijing agreed to some deescalation in their conflict through May and June. China was also seen restarting its shipments of rare earths to the U.S., while the U.S. relaxed restrictions on the export of chip designing materials to China.

But while Nvidia said last week that it will resume Chinese sales of the H20, Washington is yet to comment on the matter. 

The H20 is a key part of China’s AI development efforts, and is used by several major tech firms, including Alibaba (NYSE:BABA), Tencent, Baidu (NASDAQ:BIDU), DeepSeek, and ByteDance. 

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