Nvidia Faces New Challenges in China as Energy Rules Threaten H20 Chip Sales
China's stricter energy efficiency standards and regulatory guidance to avoid Nvidia products jeopardize the company's $17 billion annual revenue in its fourth-largest market.
- China's National Development and Reform Commission (NDRC) has introduced energy efficiency regulations that could block Nvidia's H20 chips, a product designed to comply with U.S. export controls.
- Major Chinese tech firms, including Alibaba and Tencent, have reportedly been advised by regulators to avoid purchasing Nvidia's H20 chips.
- Nvidia is working to modify the H20 chip to meet the new requirements and has requested a meeting with NDRC chair Zheng Shanjie to address the issue.
- Chinese server maker H3C has flagged potential shortages of the H20 chip due to surging demand, supply chain uncertainties, and depleted inventory.
- Competition in the AI chip market is intensifying, with Huawei doubling its AI chip yield and DeepSeek driving demand for cost-effective alternatives.
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