The Trump administration's new export restrictions on NVIDIA for China's H20 chips could cost companies billions and seriously affect product lines that specifically comply with early U.S. restrictions.
On April 9, 2025, the U.S. government informed NVIDIA that it would require permission to export H20 chips to China.
On April 14, the government further informed the company that the licensing requirement would take effect on the “indefinite future”.
The government also told the company that the new licensing requirement addresses the risk of “covering supercomputers that can be used in China or transferred to China.”
The move comes as China now faces a 245% import tax rate due to its retaliatory actions.
NVIDIA warned that it will report approximately $5.5 billion in its first quarter report ending on April 27, 2025, related to inventory and commitments for H20 chips.
The company developed the H20 chip to deal with another 2023 limit for the H800, a specific processor in China, introduced after earlier export controls. Although the H20 is intentionally powerful and the Nvidia flagship chips in training AI models are not consistent, it is still able to support AI software and services. It is suitable for the reasoning phase – AI systems analyze data, identify patterns and make decisions, report Bloomberg.
The decision to curb H20 exports is ongoing technical tensions between Washington and Beijing.
With national security concerns, the U.S. government has taken a gradual aggression stance to limit China's access to semiconductor and chip manufacturing tools.
Since October 2022, U.S. officials have expanded the scope of the ban, which includes high-bandwidth memory chips and other components that are critical to AI applications.
Earlier in April 2025, NVIDIA announced plans to manufacture up to $50 billion of AI supercomputers in the U.S. over the next four years.
The program is said to be the first time the company's AI infrastructure is fully manufactured in the United States when it works with global manufacturing partners to establish and operate advanced production facilities.
“NVIDIA warned that NVIDIA’s bet of $5.5 billion as US tightens the export curb” was originally created and published by GlobalData-owned brand DeRdict.
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