China Weighs Nvidia H200 Chip Import Approval

China is reportedly preparing to approve the import of Nvidia's H200 artificial intelligence chips, with a decision possibly coming this quarter. This move could significantly benefit Nvidia by re-entering a critical market. Major Chinese technology firms like Alibaba Group Holding Ltd. and ByteDance Ltd. have indicated a substantial interest, each looking to order more than 200,000 units of the H200 chip.

Despite this potential approval, the Chinese government plans to implement strict security measures. The H200 chips will be barred from use by the military, sensitive government agencies, critical infrastructure, and state-owned enterprises. This decision mirrors previous restrictions placed on foreign-made products such as Apple devices and Micron Technology chips, ensuring a controlled introduction of foreign technology.

This development represents a considerable opportunity for Nvidia, as China is the world's largest semiconductor market. While US restrictions have previously limited Nvidia's access, the H200 is an older-generation chip that the Trump administration had permitted for export under specific conditions. This partial re-entry could allow Nvidia to regain billions in lost business, though local competitors like Huawei are also expanding their production capabilities.