"Chinese officials are preparing to allow local companies to buy the component from Nvidia for select commercial use, said the people, who asked not to be identified because the deliberations are private. However, the H200 chip will be barred from the military, sensitive government agencies, critical infrastructure and state-owned enterprises due to security concerns, they said. That mirrors similar measures that the Chinese government adopted for foreign products such as Apple Inc. devices and Micron Technology Inc. chips."
"Even with the qualifications, the move represents a major win for Nvidia. China is the world's largest market for semiconductors, and Chief Executive Officer Jensen Huang has said that the AI chip segment alone could generate $50 billion in the coming years. In the US firm's absence, local rivals such as Huawei Technologies Co. and Cambricon Technologies Corp. have thrived and plan to sharply increase production in 2026."
China plans to approve some imports of Nvidia H200 chips as soon as this quarter, allowing local companies to buy the component for select commercial use. The H200 will be barred from use by the military, sensitive government agencies, critical infrastructure, and state-owned enterprises, although applications from those organizations will be reviewed on a case-by-case basis. The approach mirrors prior restrictions applied to foreign devices and memory chips and restores Nvidia’s access to the world’s largest semiconductor market. The H200 is an older-generation chip permitted under previous US export rules, while more advanced processors remain blocked on national security grounds. Domestic rivals such as Huawei and Cambricon have expanded and plan higher production in 2026, and major Chinese cloud and internet companies have expressed interest in large orders of the H200.
Read at www.mercurynews.com
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