Wed, 16 Apr 2025

Wed, 16 Apr 2025 Nvidia expects $5.5bn hit as US tightens chip export rules to China

The chip manufacturing giant, which has been at the heart of the AI boom, will require licences to export its H20 AI chip to China.

* Nvidia will incur $5.5bn in costs due to US export rules tightening to China
* The company's H20 AI chip, which has been a best-seller, now requires a licence to be exported to China
* The new rule is part of an escalating trade war between the US and China
* Nvidia shares fell 6% after hours trading following the announcement
* Experts say the impact on Nvidia will not be severe and may even be a negotiating tactic by the US government
* The move is part of the US-China race for tech supremacy, with chips being a key battleground
* Nvidia's AI chip business has been hit previously by rival Chinese AI app DeepSeek, which was built at a fraction of the cost
* The restrictions may lead to a full decoupling of the US and China AI semiconductor supply chains.
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