Nvidia has received approval from the US government to resume sales of its H20 chip to China amid ongoing geopolitical tensions related to semiconductors.

The H20 chip, a less advanced version of Nvidia’s flagship product, was previously restricted due to concerns about its potential use in enhancing China’s military and AI capabilities.

The company had faced a US$4.5 billion writedown and warned that export bans could backfire by helping China build its own chip industry.

Nvidia’s renewed presence in China may help the company maintain its market position, as the country is its largest market and hosts a significant number of global AI developers.

Experts say this policy shift may keep China dependent on US tech and delay its domestic semiconductor progress.

Despite China’s growing push for AI chip independence, Nvidia’s ecosystem still offers superior flexibility and software support.

Analysts believe China’s long-term goal of self-reliance in AI chips persists, though Nvidia’s return may slow its momentum.

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