NVIDIA plans to sell 1 million H20 chips in China in 2024 and generate sales of 2 trillion yen, demonstrating its presence by selling twice as many AI chips as Huawei

As the United States restricts exports of high-performance semiconductors to China, semiconductor companies continue to sell semiconductors that comply with the export restrictions to China. It has been newly reported that NVIDIA plans to sell more than 1 million units of its AI chip 'H20' to China in the next few months.

Nvidia to make $12bn from AI chips in China this year despite US controls
https://www.ft.com/content/b76ef55b-21cd-498b-ac16-5660908bb8d2

Nvidia to sell AI chips worth $12B in China
https://www.cryptopolitan.com/nvidia-to-sell-ai-chips-worth-12b-in-china/

China is focusing on research and development of AI, and the number of patent applications related to generative AI is the world's number one, nearly six times higher than the U.S. The U.S. recognizes China's AI research and development as a military threat and is restricting the export of high-performance semiconductors used in AI research.

US tightens restrictions on AI chip exports to China, making it difficult to export NVIDIA chips - GIGAZINE

The restrictions on semiconductor exports from the United States to China do not apply to all semiconductors, but only to semiconductors that meet or exceed the specified performance. For this reason, semiconductor companies such as NVIDIA and Intel are developing performance-restricted versions of semiconductor products and selling them to China. NVIDIA is developing the 'H20,' a performance-restricted version of the 'H100,' a chip specialized for AI processing, and it was reported that it began accepting pre-orders around February 2024.

NVIDIA starts pre-orders for new AI chip 'H20' exclusively for China, priced at around 1.8 million to 2.2 million yen - GIGAZINE

According to a new report by market research firm SemiAnalysis, NVIDIA plans to ship more than 1 million H20s in the coming months. The price of the H20 is estimated to be about 1.8 million to 2.2 million yen per unit, so NVIDIA will record sales of 2 trillion yen just from the H20.

The AI processing chip 'Ascend 910B' developed by Chinese company Huawei is said to have higher performance than the H20, but the shipment volume during the same period will be about half of that of the H20. This also shows that Chinese AI development institutions are showing high interest in NVIDIA chips.

In addition, in December 2023, US Secretary of Commerce Gina Raimondo stated that 'new products that are redesigned from regulated products will be immediately subject to additional restrictions.' Therefore, H20 may also be designated as a target for additional regulations in the future.

America warns NVIDIA to stop manufacturing chips for China - GIGAZINE