HONG KONG/PALO ALTO/TAIPEI -- Nvidia's H20 chips continue to see robust demand from Chinese tech giants despite recent government pressure to shift towards domestic alternatives. Industry sources report that this demand may allow the American semiconductor leader to regain market share in China, the world's second-largest economy.
In a deal to secure permission for selling its H20 chips in China, Nvidia has agreed to remit 15% of its revenue from these sales to the U.S. government. Executives from Chinese tech firms express optimism that Nvidia might soon be permitted to offer its more advanced Blackwell products in the market as well.
However, challenges loom. The Chinese government recently convened major domestic companies, including ByteDance, Alibaba, Tencent, and Baidu, to discuss their reliance on Nvidia chips and to promote the use of local alternatives like Huawei, Biren, and Cambricon Technologies. This conversation highlights ongoing tensions between fostering homegrown innovation and relying on foreign technology.
The outcome of these discussions could significantly impact Nvidia's operations in China. As the global semiconductor landscape continues to evolve, the balance between national security concerns and technological advancement remains a critical focus for both American and Chinese companies.
Image for Nvidia Secures Strong Demand in China Despite Government Pressure
