After extended delays in selling to the world’s second-largest economy, the chipmaker Nvidia It is gearing up to provide its H200 processors to some customers in China, CEO Jensen Huang said on Tuesday.
“We have received purchase orders and we are in the process of restarting our production,” Huang told reporters at the company’s GTC conference in San Jose, California. “This is new news for all of you, and it’s different than it was two weeks ago or three weeks ago, but that’s where we are today … and our supply chain is on fire.”
The company now has permission from both sides, Huang told CNBC.
China once accounted for at least a fifth of Nvidia’s data center revenue, but the company has been shut out of the country since the Trump administration announced in April that it would require a license to export chips there and to some other countries. The company said it would take a $5.5 billion charge due to export restrictions.
Earlier export controls forced Nvidia to develop a lower-capacity chip called the H20 for Chinese markets. After President Donald Trump initially halted those sales, he reversed course in December and allowed Nvidia to ship the more advanced H200 chip to China, if it took a 25% cut of US sales.
But until last month, there was still no movement on that front.
Following the company’s quarterly earnings report on February 25, Chief Financial Officer Colette Cress told analysts that “a very small number of H200 products” have been approved by the US government for sale to China, but “we have yet to generate any revenue.”
The delay is tied to reports of security checks in both countries, despite Huang’s lobbying in Washington and a trip to China earlier this year.
Excluding sales in China, Nvidia reported revenue growth of 73% in the latest quarter, marking the 11th straight period of growth above 55%.
For the current quarter, Nvidia forecast growth of around 77% and said it is not predicting any data center revenue from China in its guidance.
US licensing requirements remain burdensome, with limits on shipments, mandatory third-party testing and cuts to sales going to the government.
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