NVIDIA Affirms Compliance with U.S. Export Regulations Amid H20 Chip Cancellation and Cost Impact
In response to concerns raised by the House Select Committee, NVIDIA has emphasized its adherence to U.S. export regulations regarding AI processor sales. The company stated that it fully complies with government directives on product sales both domestically and internationally. This comes after NVIDIA disclosed a $5.5 billion revenue impact due to canceled H20 chip orders.
NVIDIA clarified that its Singapore-related revenue primarily pertains to sales from U.S.-based customers’ subsidiaries, with products often destined for regions such as the U.S. and Taiwan rather than China. The company underscored that it strictly follows government guidance on export destinations and compliance matters.
Despite attempts by Reuters to contact relevant chip procurement entities for comment, no responses were received. Analysts note that while Chinese companies may seek alternative solutions, they will likely continue purchasing NVIDIA chips within the bounds of U.S. export restrictions due to the company’s leading position in AI semiconductor technology.
These measures aim to restrict China’s access to advanced chips for military applications, building on previous policies and regulations implemented by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS).