We have another return on the USA of the US trade war with China. However, Trump's administration introduced new requirements for chips exported to China, although just a few days ago, after dinner at the residence of the US President at MAR-A-Lago, it was reported that there would be no new guidelines. It turns out that they are, and Nvidia has already stated that the changes will charge her result by several billion dollars. Technological giants were dived.
According to Reuters, the US Department of Trade announced on Tuesday about the issue of new requirements for chips exported to China, including H20 from NVIDIA and Mi308 systems from AMD and their counterparts. “The Trade Department has committed himself to acting in accordance with the President Directive in order to protect our national and economic security,” said the spokesman of the Trade Department, quoted by the agency.
Shortly after that, Nvidia informed the market that export restrictions introduced by the US government aimed at reducing the risk of using chips for the construction of supercomputists in China will charge its financial result for the first quarter (ending on April 30) with the amount of $ 5.5 billion. The size of the copy, according to analysts, may mean a decrease in annual revenues of $ 14-18 billion.
The company provided information after the end of the stock market session on Wall Street, and in the deposited trade its shares fell by over 6.3%after they gained 1.35%on the day. The price of AMD has reacted even more. In transactions on the so -called After Market, the course dropped by over 7%. Indexes dived at the Asian session. HangSeng lost over 2.3%. On the term market, contracts at NASDAQ have lowered by over 2.3%.
We would like to remind you that since 2022 the US has limited, exporting chip to China, fearing that Beijing could use American technology to strengthen its possibilities in the field of artificial intelligence and army. The H20 chip from Nvidia has been designed to meet American export restrictions to China.
The H20 system is comparable to used in the US and other countries, but it is slightly slower and has less capacity. It is, among others, it was on them that the R1 artificial intelligence models from Deepseek were trained, presented at the beginning of the year. In 2024, the system generated the estimated NVIDIA revenue of $ 12 to 15 billion.
“Although these chips are specially modified to reduce their performance, so they can be sold legally in China – they are better than many, perhaps most, native chips in China,” said prof. Chris Miller, an expert in the field of semiconductors at the University of Tufts, quoted by NPR.org.
NVIDIA said in a statement that the US government informed her on April 14 that the requirement to licensing H20 systems would be in force “for an indefinite period.” The US decision can be considered as another surprise, because a week ago the media wrote that after a dinner collecting money for Maga Inc (Political Committee supporting Donald Trump) at the MAR-A-LAGO residence in Florida, in which Jensen Huang, president of NVIDIA (the table cost $ 1 million), the US administration changed the course on exporting plans.
The information was not officially announced by the White House, but according to the National Public Radio (NPR.org), citing two independent sources, it could be influenced by the promises of Nvidia and Huang, that on the new US investments in AI data centers, spend several hundred billion dollars. The information was later provided by global agencies like Reuters.
If this was the case, then Hunag keeps his promise, because the official message from the company appeared on Monday about the investment $ 500 billion. in the USA. The US administration, however, returned to the original plans to impose additional restrictions on the export of chip to the USA.
However, everything can be an element of a wider game that the USA they lead with China in a trade war. In recent days it has been announced that the US has introduced exceptions to tariffs against some electronic products imported from China. The Secretary of Trade Howard Lutnick pointed out that this is only a pause before these products are covered by more specialized duties. He announced new regulations towards semiconductors that are aimed at transferring production back to the USA.
On Wednesday, China was appointed by Li Chenggang, deputy trade minister and the main representative for negotiations in international trade, after talks with the US got sticked, reports CNBC. Trump applied total duties to China in the amount of 145%, which responded with connecting rates at 125%. Analysts say that such a level of tariffs could lead to complete inhibition of trade in goods between the two largest economies in the world.
