The Donald Trump-led US government’s decision to introduce new licensing requirements for chips carried out to China can cost semiconductors such as Nvidia and AMD, which are worth billions. Nvidia’s H20 chips and AMD’s MI308 Artificial Intelligence (AI) chips, and other equivalent options are likely to be hit hard as soon as the US trading division formally issues its notice. A spokesman spoke to Reuters, said the US Department of Trade is “committed to acting on the president’s assignment to protect our national and economic safety”. How much will it cost Nvidia? The Trump administration policy change can cost Nvidia “billions of dollars” on a product designed to meet older restrictions, according to a Bloomberg report. In the submission of the exchanges, Nvidia said on April 15 that if implemented, the move would cost the AI disc manufacturer more than $ 5.5 billion to cost -mainly of the limits placed on the H20 AI chip export to China, he added. According to filing, the US government notified Nvidia on April 14. What are the changes in the policy? The government informed Nvidia on Monday that the H20 would require a license to export to China “for the indefinite future”, the company said in a regulatory filing on Tuesday. Officials said the new rules were concerned that “the covered products could be used in a super computer in China, or to a super computer in China,” according to filing. Nvidia warned that during the fiscal first quarter it would report about $ 5.5 billion to the fiscal first quarter of “stock, purchasing obligations and related reserves” linked to the H20 line. The company’s shares dropped about 6% after the announcement. Advanced Micro Devices Inc., which competes with Nvidia in the AI chip market, also dropped. A representative for the White House did not immediately respond to a request for comment. Bloomberg News reported in January that the Trump administration has investigated such a step. Although the H20 can be used to develop and manage software and services for artificial intelligence, it is a scaled -down product specifically designed not to be too powerful. The H20 enabled the business to serve the market for the data center AI discs in that country, although the product is not as fast as Nvidia’s non-China offers for the training of models. It was better suited to the inferteness phase-the point where the AI model recognizes patterns and draws conclusions. Now it is also seen as potentially risky to export to China, the most important American competitor in artificial intelligence and the most important target of President Donald Trump’s growing trade war. Nvidia argued that further restrictions will further strengthen that China’s determination to make itself independent of US technology and that the emphasis of US businesses will weaken. Nvidia’s Writaown indicates that the company could miss $ 14 billion to $ 18 billion in revenue for the year, Bloomberg intelligence analysts Kunjan Sobhani said in a note. “If restrictions continue, exposure to Nvidia’s data center to China can normalize to low-to-middle figures, similar to early 2024 levels,” they said. This was before the production of the H20 came up. The new restrictions follow a national public radio report that Trump supported to pursue the H20 controls, in exchange for Nvidia investing in AI data centers. The company has just announced that it would build AI infrastructure worth $ 500 billion in the US for the next four years, a figure containing plans that were already underway. The battle over limits on the export of chips has been raging for years. US officials have first banned Nvidia and other AI chipmakers from selling their most advanced models to China in October 2022, about concerns that the Beijing technology can give a military advantage. Since then, the China controls have included an increasingly large set of semiconductor manufacturing tools, as well as a greater variety of processors and high-banded memory chips, which are essential for AI applications. In addition to capturing a growing range of technologies, the Biden Administration also expanded the geographical scope of the AI chip measures -first to about 40 countries worried, Chinese firms provided a back door to access banned chips, and then in President Joe Biden’s last week, to the whole world. Trump officials have indicated that they want to strengthen the global framework and streamline. The latest rules for NVIDIA are a sign that the Trump administration will remain the course on the US government’s approach to Chinese technology development. Earlier, they follow sanctions on dozens of Chinese firms that Trump officials claim to help Beijing’s military technical efforts. (With input of agencies) first published: 16 Apr 2025, 02:22 PM IST
Donald Trump Trade War: How new US restrictions on the export of chips can cost Nvidia billions | Company Business News
