According to Caijing on April 16 (Editor: Xiao Xiang), due to the USA government's harsh restrictions limiting the export of H20 chips to China, NVIDIA's stock price significantly dropped by over 6% in Post-Market Trading on Tuesday. Meanwhile, the stock prices of various NVIDIA suppliers in South Korea and Japan also followed the decline when the market opened on Wednesday...

On the 15th local time, NVIDIA released an 8-K document stating that the company has recently received a notification from the US government that exporting the H20 chip and chips that meet the H20 memory bandwidth and interconnect bandwidth to countries and regions like China requires a license.

NVIDIA expects that in the first quarter, costs related to inventory, purchase commitments, and provisions associated with H20 products will reach approximately 5.5 billion USD.

Invesco Global Market Strategist Tomo Kinoshita stated, "This action by the USA government stems from concerns over China's rise in the electronics sector, and it is expected to have a significant negative impact on the Semiconductor supply chain."

During Biden's administration, the USA had previously implemented restrictions on the export of AI Chips in 2022 to prevent the sale of the most advanced chip products. The H20 chip, designed based on NVIDIA's previous generation AI chip architecture Hopper, is itself a "stripped-down" product launched on the basis of H100, designed to comply with prior relevant USA export restrictions.

It is reported that the revenue generated by this chip in 2024 is estimated to be between 12 billion and 15 billion USD, and it once became NVIDIA's main AI chip sold in China after H100/A100 were banned.

In recent years, NVIDIA has consistently believed that further regulation from the US government on its AI Chips will suppress competition and may even undermine the USA's global competitiveness in the Technology sector.

It is worth mentioning that due to NVIDIA's reference to relevant licensing restrictions by the US government in their announcement, involving any other chips with specifications equivalent to H20 memory bandwidth and interconnection bandwidth, industry insiders are also concerned whether some Other enterprises' chips will be affected. AMD's Stocks also fell more than 7% in Post-Market Trading on Tuesday.

Among major Asian suppliers, Japan's test equipment manufacturer Advantest Corp. saw its stock price drop by 5.6% in early trading, while South Korea's memory manufacturer SK Hynix fell by 3.7%. NVIDIA's largest foundry, Taiwan Semiconductor, dropped 2% in Post-Market Trading.

Industry research Analyst Ken Hui wrote in a report that due to the weak economic outlook, Taiwan Semiconductor may have slowed the pace of some production expansion, "and stricter regulations on NVIDIA's sales may exacerbate this slowdown."

Editor/danial