US Security Review Halts Nvidia AI Chip Sales to China, FT Reports

• Trump approved H200 chip exports to China, but a subsequent national security review has put sales on hold for nearly two months
• Chinese customers are not placing orders with Nvidia until licensing requirements and conditions are clarified
• The delay creates business uncertainty for Nvidia's AI chip sales in the Chinese market, a key revenue source

Summary: US Security Review Halts Nvidia AI Chip Sales to China

Key Development:

Nvidia's H200 AI chip exports to China remain suspended nearly two months after President Donald Trump initially approved sales, according to the Financial Times. The holdup stems from an ongoing U.S. national security review that is preventing the company from finalizing transactions.

Market Impact:

Chinese customers have ceased placing orders for Nvidia's H200 chips amid uncertainty over whether export licenses will be granted and what restrictions might be imposed. This creates a significant revenue impediment for Nvidia, as China represents a major market for advanced AI semiconductors.

Business Implications:

The situation highlights the continued friction in U.S.-China technology trade relations, even after initial presidential approval. The prolonged review process creates operational challenges for Nvidia, potentially impacting:

• Revenue forecasts from the Chinese market
• Customer relationships and order pipelines
• Competitive positioning against domestic Chinese chip manufacturers
• Overall AI chip market dynamics in the region

Timeline:

The national security review has been ongoing for nearly two months following Trump's export approval, with no clear resolution date indicated.

Broader Context:

This development underscores the complex regulatory environment surrounding advanced semiconductor exports to China, where geopolitical concerns continue to override commercial considerations. The H200 represents Nvidia's advanced AI processing technology, making it subject to heightened scrutiny under U.S. export control frameworks designed to limit China's access to cutting-edge computing capabilities.

The extended uncertainty may push Chinese buyers toward alternative suppliers or accelerate domestic chip development initiatives.