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Nvidia to Resume Sales of Highly Desired AI Computer Chips to China

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)
President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)
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Nvidia to Resume Sales of Highly Desired AI Computer Chips to China

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)
President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)

Nvidia’s CEO Jensen Huang says the technology giant has won approval from the Trump administration to sell its advanced H20 computer chips used to develop artificial intelligence to China.

The news came in a company blog post late Monday, which stated that the US government had "assured" Nvidia that licenses would be granted — and that the company "hopes to start deliveries soon." Shares of the California-based chipmaker were up over 4% by midday Tuesday.

Huang also spoke about the coup on China’s state-run CGTN television network, in remarks shown on X.

"Today, I'm announcing that the US government has approved for us filing licenses to start shipping H20s," Huang told reporters in Beijing.

He added that half of the world's AI researchers are in China. "It's so innovative and dynamic here in China that it's really important that American companies are able to compete and serve the market here," he said.

Huang recently met with President Donald Trump and other US policymakers and is in Beijing this week to attend a supply chain conference and speak with Chinese officials. The broadcast showed Huang meeting with Ren Hongbin, the head of the China Council for Promotion of International Trade, host of the China International Supply Chain Expo, which Huang was attending. Nvidia is an exhibitor.

Nvidia has profited enormously from the rapid adoption of AI, becoming the first company to have its market value surpass $4 trillion last week. However, the trade rivalry between the US and China has been weighing heavily on the industry.

Here's what we know.

What is Nvidia's H20 chip? The H20 graphics processing unit, or GPU, is an advanced AI chip — a type of device used to build and update a range of AI systems. But it's less powerful than Nvidia's top semiconductors today.

That's because the H20 chip was developed to specifically comply with US restrictions for exports of AI chips to China. Nvidia's most advanced chips, which carry more computing power, are off-limits to the Chinese market.

Washington has been tightening controls on exports of advanced technology to China for years, citing concerns that know-how meant for civilian use could be deployed for military purposes. And in January, before Trump began his second term in office, President Joe Biden's administration launched a new framework for exporting advanced computer chips used to develop AI in an attempt to balance national security concerns about the technology with the economic interests of producers and other countries.

Restrictions on sales of advanced chips to China have been central to the AI race between the world's two largest economic powers, but such controls are also controversial.

Proponents argue that these restrictions are necessary to slow China down enough to allow US companies to keep their lead. Meanwhile, opponents say the export controls have loopholes and could still spur innovation. The emergence of China’s DeepSeek AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.

What's happened since Trump took office? In April, the White House announced that it would restrict sales of Nvidia’s H20 chips to China — as well as MI308 chips from rival chipmaker Advanced Micro Devices with the Trump administration again citing national security.

At the time, Nvidia said these tighter export controls would cost the company an extra $5.5 billion and Huang and other technology leaders have been lobbying Trump to reverse the restrictions since. They've argued that such limits hinder US competition in a sector in one of the world’s largest markets for technology, and have also warned that US export controls could end up pushing other countries toward China’s AI technology.

Monday's announcement from Nvidia signals that its lobbying efforts paid off. White House AI and crypto adviser David Sacks told Bloomberg on Tuesday that allowing Nvidia to restart Chinese sales of its H20 chip would help the US better compete abroad, particularly with Chinese chipmaker Huawei Technologies.

Meanwhile, Commerce Secretary Howard Lutnick told CNBC on Tuesday that the renewed sale of H20 chips in China was linked to a trade agreement made between the two countries on rare earth magnets and maintained that the administration was also reversing course from April's restrictions because the US still doesn't sell China "our best stuff."

Still, calls for restrictions on advanced chip exports to China have persisted among US lawmakers on both sides of the aisle.

Just last week, Sens. Elizabeth Warren and Jim Banks wrote a letter to Huang noting that the hardware powering advanced AI "is of immense strategic importance" and again warned that this kind of technology could be used to accelerate Beijing’s effort to modernize its military if exported freely. US lawmakers have also proposed that chips subject to export controls should be tracked, to ensure they don’t end up in the wrong places.

Beyond export controls, California-based Nvidia — like other tech giants today — has been caught in the crosshairs of Trump’s tariff wars abroad, particularly amid America's tit-for-tat levies with China. But Beijing and Washington recently agreed to pull back some non-tariff restrictions. China says it’s approving permits for rare earth magnets to be exported to the US, while Washington has lifted curbs on chip design software and jet engines.

Nvidia and its CEO have also garnered Trump’s favor in recent months. In April, the company announced that it would be producing its AI chips in the US for the first time, starting with more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas.

Trump was quick to applaud Nvidia's move. He introduced Huang as a "smart cookie" who was helping bring jobs to the US at an "Investing in America" event held at the White House later that month.

Similar to Nvidia, AMD is now also poised to restart Chinese sales of its MI308 chips. The California-based company said in a statement that the Commerce Department was moving forward with license applications for these exports to China, and that it plans to resume shipments as those licenses are approved.

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Technology

EU Wants to Break Up with US Tech

To help European firms edge out foreign rivals, the EU is set to unveil new rules covering the cloud, AI and chip sectors on June 3. (AFP file)
To help European firms edge out foreign rivals, the EU is set to unveil new rules covering the cloud, AI and chip sectors on June 3. (AFP file)
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EU Wants to Break Up with US Tech

To help European firms edge out foreign rivals, the EU is set to unveil new rules covering the cloud, AI and chip sectors on June 3. (AFP file)
To help European firms edge out foreign rivals, the EU is set to unveil new rules covering the cloud, AI and chip sectors on June 3. (AFP file)

Wary of being vulnerable to the whims of foreign governments, the European Union is preparing far-reaching new moves to ditch American digital companies and Chinese chips in favor of European alternatives.

The EU's technological sovereignty package is among many measures taken by Brussels to slash dependence on foreign firms and boost local manufacturing -- but risks opening up a new front in transatlantic tensions.

The hotly awaited package of new rules on chips, cloud computing and AI will be presented on Wednesday as part of the EU's effort to "reclaim its place in the global race for geoeconomic power", a draft strategy document seen by AFP said.

Of particular concern is how much the European Union relies on US cloud providers, which account for around 70 percent of Europe's market.

Since President Donald Trump returned to the White House last year, Europeans worry that critical digital infrastructure could be brought to a halt by an American "kill switch" if tensions ever reached fever pitch.

Top EU officials don't directly name their target as the United States, but American tech dominates, from cloud computing to social media to e-commerce.

"We need to develop our own capacities. We cannot allow someone trying to influence our own decisions, our own values, our own well-functioning economy and services," EU competition tsar Teresa Ribera said this month.

EU officials often point to Washington's sanctions against International Criminal Court judges -- imposed by Trump in February 2025 -- to illustrate the grip of US firms. Judge Nicolas Guillou has described how he lost access to his Visa card since it is an American system.

But US envoy to the EU Andrew Puzder has warned against any protectionist moves, while American companies have urged Europe not to keep them out.

"Europe will not be able to pull itself into the AI economy by bringing other people down," Puzder told AFP last month when asked about the plans.

- Sweeping package -

Wednesday's package will include:

-- the "Cloud and AI Development Act", aimed at speeding up the deployment of data center infrastructure

-- a "Chips Act" proposal to reinforce the security of supply for semi-conductors by reducing dependence on foreign providers

-- a push for public authorities to use more open-source software solutions as a way to gain greater control and flexibility and avoid being locked in.

EU lawmaker Oliver Schenk told AFP the package was "not about opposing our trading partners or closing markets", but said: "Europe must avoid becoming structurally dependent on any single external actor" for AI, cloud and chips.

The draft strategy, which could still change before the announcement, said governments would be expected to conduct "sovereignty risk assessments" for cloud and AI to "improve resilience" and spot European alternatives.

"Europe must ensure that public investments in AI and cloud infrastructure strengthen European innovation capacity, resilience and security," Schenk said.

According to a second draft document on chips, the commission wants the power to intervene in the event of a crisis by forcing "manufacturers to prioritize orders for crisis-critical products, overriding existing contracts".

It also proposes common purchasing, which means the EU would act as "a central buyer for multiple member states facing severe shortages".

- 'No kill switch' -

Aaron Cooper of tech industry group Business Software Alliance sought to offer reassurances to Europeans who fear any US administration could act to hurt the bloc at times of tension, following past frictions, including over tariffs.

"There is no such thing as a kill switch," Cooper told AFP, adding companies "want to comply with laws wherever they're doing business".

American tech companies have been keen to shift the focus of the debate, insisting Europeans would be in charge of their data while using US services.

"Digital sovereignty is about control, not just borders," said Ana Paula Assis, chair for IBM Europe, Middle East, Africa and Asia Pacific, adding that the company helps its clients "maintain authority over their entire IT estate".

The EU says the package will drive innovation and help Europe catch up with the United States and China in the AI race.

But Ben Brake, director general of DOT Europe, whose members include Amazon and Apple, said "retaliating against US corporations in response to trade disputes will neither drive innovation nor strengthen Europe's competitiveness".

Technology

Huawei Bets on Speed Over Shrinking Transistors to Sidestep US Chip Sanctions

A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)
A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)
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Huawei Bets on Speed Over Shrinking Transistors to Sidestep US Chip Sanctions

A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)
A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)

Huawei's new chip design principle focused on boosting transmission speed rather than continuing to shrink semiconductors offers a path for China to build cutting-edge chips despite US sanctions, though whether it represents a true breakthrough remains to be seen.

China has been barred since 2019 from importing ASML's most advanced extreme ultraviolet (EUV) lithography machines, curbing the ability of its chipmakers to keep up with global leaders like Taiwan's TSMC in relying on ever-smaller manufacturing processes that make chips more powerful.

For decades, the semiconductor industry has been governed by Moore's Law - the observation that the number of transistors on a microchip doubles roughly every two years.

Huawei this week unveiled an alternative approach: cutting the time signals take to move through chips and larger computing systems using a principle it calls the Tau Scaling Law.

Its central technique, LogicFolding, aims to arrange logic, analogue and memory circuits in stacked, more tightly connected structures, potentially improving density, efficiency and clock speeds over the next decade.

Proponents see it as ‌a way to ‌extend chip progress as manufacturing advances begin to slow.

"For Huawei, chips face two key constraints. ‌One ⁠is inevitable that Moore's ⁠Law will hit a physical 'wall' within the next decade," He Tingbo, the president of Huawei's semiconductor business, told China's People's Daily this week.

"The other is accidental because of the external restrictions that Huawei encountered this 'wall' earlier than its peers," she said, in a likely reference to US sanctions on importing advanced EUV machines.

But others argue that reducing latency has always been part of semiconductor design and that many of the underlying ideas resemble existing work in three-dimensional (3D) stacking, advanced packaging and system optimization.

"This is a breakthrough for Huawei, but it's not a threat for TSMC," Nvidia CEO Jensen Huang told reporters in Taipei on Thursday. "TSMC has been using die stacking and 3D packaging for how long now? Almost ⁠10 years. And so TSMC's technology is very advanced."

NOT A NEW CONCEPT?

In the race to ‌build more powerful computing systems, the chip industry has already embraced advanced packaging technologies ‌that stack chips vertically.

TSMC has been at the forefront with its packaging technology called SoIC, which enables more tightly integrated heterogeneous chiplets to reduce ‌size and improve performance.

Memory chip makers such as SK Hynix and Samsung Electronics also use advanced 3D stacking and packaging technologies ‌to produce multi-layer memory chips, a key component of AI chipsets, and to improve power efficiency and performance.

Huawei believes LogicFolding may actually go beyond the techniques commonly used in 3D integrated circuit stacking, thanks to "very finely and carefully split the critical paths of logic circuits across multiple layers," according to Liao Heng, chief scientist at Huawei Semiconductor.

But Bernstein analysts cautioned in a note that while stacking multiple chip layers boosts transistor density, it also increases power ‌density and risks overheating chips. Production yields and costs will be another barrier for adoption, they added.

Huawei's own roadmap also points to those challenges. Huawei's He said the approach would require ⁠new semiconductor design tools suited to ⁠folded chip architectures, as well as better ways to manage heat across devices ranging from smartphones to large AI data centers.

"With the methodology of not optimizing the area on a chip level, but on a system level based on time, that will dramatically change the capability requirements for the EDA (electronic design automation) vendors," said Handel H. Jones, CEO of International Business Strategies, during a panel discussion on Tau Scaling on Tuesday.

Mainstream EDA software produced by vendors like Cadence Design Systems and Synopsys plays a crucial role in creating blueprints for sophisticated semiconductor devices.

EYES ON NEW KIRIN CHIP

Huawei's most concrete claims centered on a new Kirin smartphone chip that will be launched later this year, which would be the first to use its LogicFolding architecture.

Compared with its earlier single-layer design, the new chip would improve power efficiency by 41%, and raise the chip's peak operating speed by nearly 13%, Huawei's He said in a speech on Monday.

Those figures would be significant if achieved at commercial scale. But Huawei did not provide production yield information, cost comparisons or a clear explanation of how the gains would compare with rival chips made using more advanced process nodes.

"There's nothing concrete that can be independently verified or benchmarked against other players at the moment," said Lian Jye Su, chief analyst at tech research firm Omdia.

Technology

Humanoids Dance and Thread Needles as Japanese Robotics Developers Look to Outdo Chinese

A humanoid robot poses for photo at the Humanoids Summit 2026 in Tokyo, Thursday, May 28, 2026. (AP)
A humanoid robot poses for photo at the Humanoids Summit 2026 in Tokyo, Thursday, May 28, 2026. (AP)
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Humanoids Dance and Thread Needles as Japanese Robotics Developers Look to Outdo Chinese

A humanoid robot poses for photo at the Humanoids Summit 2026 in Tokyo, Thursday, May 28, 2026. (AP)
A humanoid robot poses for photo at the Humanoids Summit 2026 in Tokyo, Thursday, May 28, 2026. (AP)

Mechanical hands dexterous enough to thread a needle, childlike dancing robots and adult-sized ones to help with deliveries were on display Thursday as the Humanoids Summit Tokyo opened.

Among the dozens of companies taking part, including well-known players like Boston Dynamics and Toyota Motor Corp., the big stars now were clearly the Chinese.

Chinese newcomers, like Booster Robotics and LimX Dynamics, took the technology initially developed in Japan and the US and fine-tuned it, often for cheaper mass production. It’s a repeat of what happened in other Japanese industries, from consumer electronics to cellphones and electric vehicles. In humanoids, Japan was initially ahead but then failed to produce major commercial solutions.

Tim Hornyuk, author of “Loving the Machine: The Art and Science of Japanese Robots,” who was at the event, categorized it as the so-called “Galapagos syndrome,” referring to how innovative Japanese products evolve in isolation and end up not translating for the international market.

“I really hope that Japan can come up with a Ford Model T-version of humanoid roots. But I think China has already stolen their lunch. It’s a bit too little too late,” he said.

The dancing and wiggling Mini Pi Plus robot from High Torque of China, for instance, still can’t help at an auto plant or do your dishes. But it’s cute. And it doesn’t come with an eye-popping price tag, starting at $5,500.

One telling example of Chinese robotics use in Japan was GMO, a Tokyo-based AI and robotics company working on a humanoid with camera eyes that will help with Japan Airlines cargo and other chores at an airport.

The key is to have the robot do the work in the same way as people so they would be interchangeable, an initiative meant to tackle the labor shortage problem that is increasingly serious in Japan.

The inner robotics workings were all courtesy of Unitree, a Chinese outfit, which is also working on a four-legged dog-like “stellar explorer.”

Experts say Japan, with its finesse in manufacturing, proved a good breeding ground for robotics development. The sociological backdrop of a public receptive to robotics also helped.

A recent Pew global survey showed that people in Japan are highly aware of AI but are less anxious about it, at about 28%, than people in the US at 50%.

Japanese automaker Honda Motor Co., a leader in robotics with its walking humanoid Asimo, first shown in 2000, was demonstrating a motorized four-fingered robotic hand that could screw on and off tiny bolts, or thread a needle.

It didn’t seem to bother Keisuke Tsuta, assistant chief engineer, that similar mechanical hands were on display galore near his booth, many of them from Chinese makers.

Japanese robotics show their prowess

The technology Honda had developed is more durable and powerful than rival offerings, and the Japanese have historically shown they can excel at quality mass production, according to Tsuta.

The looming threat of a Chinese robotics domination didn’t seem to phase Osaka University Professor Hiroshi Ishiguro, who has worked on humanoids for decades, including one that’s his clone.

“What’s significant is that Japan has a culture that’s receptive to robotics. If we’re going to really start using robots in society, Japan is the ideal place,” he said, stressing that Japanese don’t discriminate against robots.

His robotic counterpart, dressed all in black like the professor, did as good a job, if not better, of answering a key existentialist question on the meaning of robots.

“I think robots will coexist with people. Robots are the mirror of human beings,” the robot replied in a slightly monotonous but human-like voice.

Earlier, the professor had answered a similar question, but a bit differently.

“No one is interested in me. All everyone cares about is my robot,” he said, sitting next to his twin-like humanoid.

“As long as people identify with what I have produced, I am a success,” he added.