Jakarta, INTI - CEO of Nvidia Corp., Jensen Huang, announced that the company is starting the production of the H200 AI accelerator for customers in China. This marks Nvidia's progress in re-entering the Chinese market. At a press conference on Tuesday, Huang stated that Nvidia has obtained licenses to sell the H200 to multiple customers in China.
Huang said Nvidia's supply chain has resumed operations. The announcement was made at the company's annual GTC conference in San Jose, California. At the event, Nvidia introduced a series of new products and provided a financial update to investors.
Chinese Market Plays an Important Role in Nvidia Revenue
Nvidia is working to bring back sales of its AI processors in China, which have been hampered by US export restrictions. Although the Trump administration has allowed the sale of less powerful versions of the chips, a license from the US government is still required.
For now, Nvidia is delaying including Chinese data center revenue in its financial projections. Nvidia stated in a conference call last month that it had only received one US permit to ship a small number of H200 accelerators to China.
Even though the H200 is not as advanced as Nvidia's current AI accelerators, it remains more powerful than those available locally in China. China once accounted for a quarter of Nvidia's revenue, but now, China contributes only a small portion. China is the largest single market for semiconductors, making it crucial to Nvidia's long-term plans.
Last December, Nvidia received President Donald Trump's permission to sell the H200 to Chinese customers. However, the company has yet to record any revenue from those sales.
Policymakers in Washington have also imposed obstacles that are slowing down official approvals. H200 shipments to China must undergo US inspections and are subject to a 25% tariff. Bloomberg reported that officials are also considering limiting H200 sales to 75,000 chips per Chinese customer, with total shipments reaching up to 1 million processors.
Conclusion
Nvidia has resumed production of its H200 AI accelerator for the Chinese market after obtaining a limited license from the US government. While the supply chain recovery is a positive sign for the company, China's revenue contribution remains limited, while the country remains crucial to Nvidia's long-term growth in the global semiconductor industry.
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