Nvidia expects a $5.5 billion impact after US curb on chip exports to China (2025)

The company is required to hold a license to export the H20 chip for an indefinite time. The decision will impact the company that designed this specific chip to fulfill the export requirements to China.

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In a regulatory filing published on Tuesday, Nvidia warned that the latest Trump administration measures, which would imply a curb on exports of the H20 chip to China, could impact the company’s revenue by $5.5 billion.

“First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves,” informed Nvidia.

The Government informed the company that it would require a license to sell this chip “for the indefinite future”, as can be read in the filing. This particular chip was the most powerful Nvidia could sell to China, and was already under review by the White House, which was expected to prohibit its exports. The company designed and manufactured this specific chip to export to China, as it complied with the existing limitations.

The measures come after the release of the Chinese language model, DeepSeek, that challenged the American models, and raised concerns within the Government about the chips usage to power such models.

In the report, the Company states the Government's that “the covered products may be used in, or diverted to, a supercomputer in China.” This decision could impact by $5.5 billion the company’s financial result for the quarter ending in April 27th.

In past days, the Trump administration announced the beginning of investigations into the pharmaceutical and semiconductor industries to determine if further tariffs on imports are required. Since October 2022, the US has imposed measures against chip exports to China, which have expanded in the last days, under the Trump administration.

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Daniela Morales Soler,2025-04-16(Update:2025-04-16)

Nvidia expects a $5.5 billion impact after US curb on chip exports to China (2025)

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