Nvidia May Be Done with China – The H20 GPU Could Be Dead for Good

Multiple reports suggest that Nvidia is halting production of its China-specific H20 GPU, citing mounting political and economic pressure—despite once projecting a $50 billion annual opportunity in the region.

Under a recent agreement with the Trump administration, Nvidia was allowed to resume shipping H20 GPUs to China—but only if 15% of the Chinese sales go to the U.S. government. That alone is restrictive, but back in April, the situation was even worse: Washington imposed export licensing requirements that effectively shut Nvidia out of China, forcing the company to erase its Chinese TAM entirely.

This decision caused a $4.5 billion loss from inventory write-downs and abandoned purchase agreements in the April-ending quarter, and the company forfeited another $8 billion in potential revenue. China accounted for 13% of Nvidia’s total global sales—about $17 billion—in its fiscal year ending January 26, 2025. The company had projected that its yearly revenue opportunity in China could reach $50 billion.

Now, according to The Information, Nvidia has instructed some suppliers to stop work related to the H20 chip, signaling that the company sees no viable future for the product—especially as tensions rise. China’s politburo has grown increasingly wary of being perceived as “addicted to American technology,” a narrative recently reinforced by U.S. Commerce Secretary Howard Lutnick.

China has since begun discouraging its tech firms from purchasing the H20, citing fears over spyware and backdoors that could benefit U.S. intelligence. Some officials have even hinted at a full ban on the GPU.

Meanwhile, Nvidia is already preparing the next-gen B30 chip to replace the H20. But with hostility toward the company building in Beijing, whether it can reclaim any presence in the world’s second-largest economy remains a major question. The death of the H20 project could mark a broader turning point in U.S.–China tech relations.

Source: WWCCTECH