US licenses Nvidia to export chips to China, official says
The U.S. last month reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor specially to the Chinese market to comply with the Biden-era AI chip export controls.
The curbs will slice $8 billion off sales from its July quarter, the chipmaker has warned.
Nvidia CEO Jensen Huang met with Trump on Wednesday, two sources familiar with the matter told Reuters.
A spokesperson for Nvidia declined comment. A White House spokesman did not immediately respond to a request for comment.
The company said in July it was filing applications with the U.S. government to resume sales to China of the H20 graphics processing unit, and had been assured it would get the licenses soon.
It is unclear how many licenses may have been issued, which companies Nvidia is allowed to ship the H20s to, and the value of the shipments allowed.
Nvidia disclosed in April that it expected a $5.5 billion charge related to the restrictions. In May, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials.
The Financial Times first reported Friday's developments.
Nvidia said last month that its products have no 'backdoors' that would allow remote access or control after China raised concerns over potential security risks in the H20 chip.
Exports of Nvidia's other advanced AI chips, barring the H20, to China are still restricted.
Successive U.S. administrations have curbed exports of advanced chips to China, looking to stymie Beijing's AI and defense development.
While this has impacted U.S. firms' ability to fully address booming demand from China, one of the world's largest semiconductor markets, it still remains an important revenue driver for American chipmakers.
Huang has said the company's leadership position could slip without sales to China, where developers were being courted by Huawei Technologies with chips produced in China.
In May, Nvidia said the H20 had brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue during the period.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
18 minutes ago
- Economic Times
Future foreign minister? Chinese diplomat Liu Jianchao detained in Beijing and taken away for questioning: Reports
Chinese diplomat Liu Jianchao detained: Liu Jianchao, a veteran Chinese diplomat, faced detention after returning from an overseas trip. Authorities questioned him in early August. They also searched his residence. The reasons for his detention remain unknown. This disappearance marks the most high-profile incident since Qin Gang's removal. Liu was considered a potential successor to Wang Yi. Tired of too many ads? Remove Ads Liu Jianchao Detained After Returning From Overseas Trip Highest-Level Diplomat Disappearance Since Qin Gang in 2023 Tired of too many ads? Remove Ads Liu's Career Spanned Diplomacy and Anti-Corruption Work Analysts Expected Liu to Succeed Wang Yi Tired of too many ads? Remove Ads FAQs : Liu Jianchao, a veteran Chinese diplomat long speculated to be a leading candidate for, was detained and brought in for questioning by the authorities in early August, as per a 61-year-old was said to have been detained soon after he returned from a business trip that took him to Singapore, South Africa, and Algeria and ended on July 30, as per a Reuters report. The authorities also searched his residence, but the reasons for the detention are unknown, according to the China's State Council Information Office nor the International Department of the Communist Party, which is led by Liu, commented on the Reuters report. The profile of Liu is still active on the department's official website, as per Reuters READ: China's job crisis spurs bizarre trend: Young Chinese pay companies just to pretend they have a job — here's why Liu's sudden disappearance is the most high-profile vanishing act by a Chinese diplomat since the mysterious fall of former foreign minister Qin Gang in 2023, a protégé of President Xi Jinping, according to the for the unusual frequency and intensity of his overseas travel, good command of English, confident, and ability to engage spontaneously without pre-prepared talking points, Liu was different from Chinese diplomats in the past, as per the Reuters diplomat, who met him in late 2023, said that "He knows how to shape Chinese narratives in a way that's engaging and appealing to foreigners," as quoted in the report. While another diplomat who met his aides around that time said they were very confident that he would soon be promoted to foreign minister, as reported by READ: Shouting match erupts between Trump and Netanyahu over Gaza starvation pics - here's what actually happened Liu was born in Jilin province in northeast China and studied English at Beijing Foreign Studies University before continuing to Oxford University to study international relations, according to the report. He began his foreign ministry career in China as a translator and subsequently worked in its mission in the UK, and as ambassador to Indonesia and the Philippines, as per the Reuters other Chinese diplomat, he served two successive postings in China's anti-corruption bureaucracy between 2015 and 2018, when he helped track down corrupt officials who fled overseas, as reported by 2022, Liu had headed the Communist Party's International Department, which oversees the management with foreign political parties, according to the READ: Giant Wyoming data center to guzzle 5x more power than residents, but the user remains secret Liu was the most frequently mentioned potential replacement for veteran diplomat Wang Yi as foreign minister according to many diplomats and analysts, as per Reuters. He traveled on a high-profile 2024 trip to the United States, where he met with a variety of senior officials, including then-Secretary of State Antony Blinken, according to the he was not promoted to the role at a recent annual government reshuffle, as per the report. Wen-Ti Sung, a fellow at the Atlantic Council's Global China Hub, said that, "If true, Liu Jianchao's downfall will lead to further power vacuum at the top of China's foreign affairs portfolio," adding, "It removes a frontrunner to succeed Wang Yi and deprives China of a potential next steward for China's foreign policy," as quoted by READ: As the July jobs report paints a grim picture, 114 companies plan layoffs in August - is yours on the list? He was detained in early August, shortly after returning from a business trip on July 30, as per the Reuters reason for his detention is unknown. Authorities also searched his home in early August.
The Hindu
18 minutes ago
- The Hindu
Trump signs order to extend China tariff truce by 90 days: U.S. media
U.S. President Donald Trump reportedly signed an order delaying the reimposition of higher tariffs on Chinese goods on Monday, hours before a trade truce between Washington and Beijing was due to expire. The halt on steeper tariffs will be in place for another 90 days, the Wall Street Journal and CNBC reported, citing Trump administration officials. The White House did not respond to queries on the matter. While the United States and China slapped escalating tariffs on each other's products this year, reaching prohibitive triple-digit levels and snarling trade, both countries in May agreed to temporarily lower them. But their 90-day halt of steeper levies was due to expire Tuesday. Asked about the deadline earlier Monday, Mr. Trump said: "We'll see what happens. They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself." Mr. Trump also touted the tariff revenue his country has collected since his return to the White House, saying "we've been dealing very nicely with China." "We hope that the U.S. will work with China to follow the important consensus reached during the phone call between the two heads of state," Chinese foreign ministry spokesman Lin Jian said in a statement. He added that Beijing also hopes Washington will "strive for positive outcomes on the basis of equality, respect and mutual benefit." The full text of Mr. Trump's latest order has yet to be released. The 90-day extension means the truce is set to expire in early November, according to the Wall Street Journal. - Shaky truce - Even as both countries reached a pact to cool tensions after high level talks in Geneva in May, the de-escalation has been shaky. In June, key economic officials convened in London as disagreements emerged and U.S. officials accused their counterparts of violating the pact. Policymakers met again in Stockholm last month. U.S. trade envoy Jamieson Greer said last month that Trump will have the "final call" on any such extension. Mr. Trump said in a social media post late Sunday that he hoped China will "quickly quadruple its soybean orders," adding that this would be a way to balance trade with the United States. For now, the extension of a truce means that U.S. tariffs on Chinese goods this year stand at 30%. Under their de-escalation, Beijing's corresponding levy on U.S. products stood at 10%. Since returning to the presidency in January, Mr. Trump has slapped a 10%"reciprocal" tariff on almost all trading partners, aimed at addressing trade practices Washington deemed unfair. This surged to varying steeper levels last Thursday for dozens of economies. Major partners like the European Union, Japan and South Korea now see a 15%US duty on many products, while the level went as high as 41 percent for Syria. The "reciprocal" tariffs exclude sectors that have been separately targeted, such as steel and aluminum, and those that are being investigated like pharmaceuticals and semiconductors. They are also expected to exclude gold, although a clarification by U.S. customs authorities made public last week caused concern that certain gold bars might still be targeted. Mr. Trump on Monday said that gold imports will not face additional tariffs, without providing further details. The U.S. president has taken separate aim at individual countries such as Brazil over the trial of former president Jair Bolsonaro, who is accused of planning a coup, and India over its purchase of Russian oil. Canada and Mexico come under a different tariff regime.
Time of India
18 minutes ago
- Time of India
Nvidia strikes $3 billion revenue-sharing deal with Trump administration to resume AI chip sales in China
Nvidia struck a deal with the Trump administration to continue selling chips to China. The agreement involves Nvidia sharing revenue with the US government. This decision followed earlier export restrictions on Nvidia's H20 chips. Analysts suggest this move is better than letting Chinese companies dominate the AI market. However, some worry it might push China towards domestic chipmakers like Huawei. Tired of too many ads? Remove Ads Nvidia and AMD face criticism over China deal Tired of too many ads? Remove Ads China's chip market and Nvidia's challenges FAQs Nvidia made a special deal with the Trump administration to keep selling chips to China. The deal means Nvidia will share up to $3 billion in revenue with the US government this fiscal year to sell its H20 chips in Trump confirmed the deal on Monday, saying he granted export licenses to Nvidia in exchange for 15% of the China sales revenue. Trump called Nvidia CEO Jensen Huang 'a brilliant guy' during the from multiple media outlets, including the Financial Times and Washington Post, said Nvidia and AMD made similar deals with Trump, citing unnamed sources. Some trade experts called the deal 'blackmail' and said it might violate the US Constitution's ban on export taxes, as per the report by Washington did not officially confirm the deal but said they follow US government rules and hope export controls allow them to compete in China and worldwide. Nvidia and AMD shares dropped slightly on Monday after the news. China is very important to Nvidia, making up 13% of its revenue last fiscal year, as stated by Yahoo has tried selling lower-power chips to China due to tighter US export controls for national security reasons. Nvidia launched its H20 chips (based on Hopper technology) in 2024. In April, the Trump administration unexpectedly banned Nvidia from exporting H20 chips to China, causing Nvidia to lose billions and its stock to fall sharply. The export ban was lifted in July, but US lawmakers still worry about China's AI Street expects Nvidia to recover $15 billion in lost sales in the second half of the year, reaching about $20 billion total revenue from China for fiscal year 2026. If the revenue reaches $20 billion, the US government could earn $3 billion from the deal (15% of sales).Analyst Stacy Rasgon from Bernstein said it's better for Nvidia and AMD to sell AI chips to China than to let Chinese companies like Huawei take over the AI market, as per the Yahoo Finance is a big Chinese tech company making chips to compete with Nvidia's H20 chips. Nvidia says US export controls might help Chinese rivals like Huawei to grow stronger. Currently, the revenue-sharing deal covers only Nvidia's H20 chips. (Trump's comment).In July, Nvidia also released new chips with its latest Blackwell architecture for the Chinese Rasgon expects China to start buying these new Blackwell-based chips from Nvidia as export rules allow. However, analyst Gil Luria from DA Davidson warns the deal could push China to rely more on domestic chipmakers like Huawei. Luria says China might not want to buy from US companies if they have to share money with the US government, according to the report by Yahoo made the deal to get permission to sell its H20 AI chips to China while sharing part of the revenue with the US US government could earn up to $3 billion from Nvidia's revenue-sharing deal based on 15% of the China sales.
