Is Nvidia Losing China? The US vs China AI Chip Battle Tightens in 2025
Is Nvidia Losing China? The US-China AI Chip Battle Tightens in 2025
Updated on: 05/16/2025 — Author: worldnewshubt
Nvidia might lose the entire AI chip market in China – and it all started with a chip called H20.
- The US tightens control over AI technology exports.
- China accelerates localization with Huawei and SMIC.
- Nvidia is forced to pick a side in a global geopolitical game.
Pressure from the US: More than just chips
Since 2023, the Biden administration has issued a series of export restrictions on advanced chips to China. Nvidia had to adjust its H100 and A100 chips to create the H800 and H20 lines just to circumvent the rules.
However, by late 2024, the US Department of Commerce further tightened regulations, banning even these downgraded chip versions.
China’s counterattack: SMIC & Huawei rise
Meanwhile, Huawei has quietly developed the Ascend 910B chip, and SMIC is ramping up production of 7nm chips. This not only boosts the domestic tech industry but sends a clear message that China will not depend on Nvidia forever.
Nvidia: Sell to China or keep US trust?
CEO Jensen Huang is walking a tightrope. Selling to China could bring billions in revenue annually, but at the cost of losing trust in Washington. If Nvidia loses its license, it could be banned from using US technology – a death sentence for its supply chain.
What choices does Nvidia have in 2025?
Nvidia is looking to expand manufacturing in India and Vietnam, and possibly shift some orders to TSMC in Japan. But whatever path it takes, every move is costly in this high-stakes chess game.
“Nvidia can’t please both the US and China in the AI era.” – Geopolitical tech expert at Bloomberg.
How will this impact the future of global AI?
If Nvidia pulls out of China, China must speed up localization. If the US fully bans Nvidia, the global AI industry will face a major power redistribution – risking deep fragmentation.
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