The TechQuilt Nvidia Wins Permission to Sell H20 AI Chips in China
Nvidia announced on July 15, 2025, that it plans to resume sales of its H20 AI chips to Chinese customers. These chips had been restricted by U.S. export rules since April but are now back on the table.
Key Highlights
- License approval coming:
Nvidia confirmed that the U.S. government has assured it that license applications will be approved, allowing shipments to resume soon. - Strategic lobbying efforts:
This shift followed recent high-level meetings—including Nvidia’s CEO Jensen Huang meeting with President Trump and discussions in both Washington and Beijing - Designed to comply:
The H20 chip was created to meet U.S. export guidelines, which previously led to a sudden halt in sales when tighter rules were enforced in April - Big financial impact:
Following the ban, Nvidia took a $5.5 billion write-off and missed out on roughly $2.5 billion in revenue for one quarter - Boost to Nvidia stock:
The announcement lifted Nvidia shares by about 4.5% in early trading—helping the company maintain a market value above $4 trillion
Why It Matters
- Revived access to China’s AI boom
China is a key driver of global AI innovation. Reentering this market could restore a major revenue stream for Nvidia. - Global supply chain positive
Analysts see this decision as a promising sign for the broader semiconductor industry and improved U.S.-China trade relations - Supports U.S. leadership in AI
CEO Jensen Huang has emphasized that American technology should remain the global standard, and this move reinforces that strategic position - Regulatory balance:
Nvidia now offers a “fully compliant” RTX PRO chip for industrial uses like smart factories and logistics—demonstrating compliance with U.S. guidelines while expanding in China
What’s Next?
- Licenses pending:
While Nvidia has applied for the necessary export permits, actual deliveries depend on the Commerce Department’s approval. - CEO in Beijing:
Huang is in China this week for a supply‑chain expo and will hold a press briefing—likely to confirm timelines for shipments - Watch U.S. policy:
Although current signals are positive, any shift in Washington’s trade stance could affect future approvals—even for compliant chips
Bottom Line
Nvidia’s renewed ability to sell H20 AI chips in China is a major win. It helps the company recover from billions in losses, rekindles access to a massive AI market, and gives U.S. tech a competitive edge—while navigating sensitive export rules. Stay tuned: actual shipments depend on final license approvals in the coming weeks.
