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Home » News » Nvidia follows export laws ‘to the letter’ after China chip sales end

Nvidia follows export laws ‘to the letter’ after China chip sales end

Jessica BrownBy Jessica Brown World
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Jensen Huang, co -founder and Executive Director of Nvidia Corp., during the Siliconware Precision Industries Co. (Spil) opening ceremony Tan Ke Plant in Taichung, Taiwan, on Thursday, January 16, 2025.

A rong xu | Bloomberg | Getty images

A day after Nvidia revealed that it would incur a cost ratio of $ 5.5 billion with canceled orders for the H20 Chip, which the Government said that this week requires a license to export to China, the smart company selectively on the rules of where. Standards.

“The United States government instructs US companies about what they can sell and where: we follow the government’s instructions to the letter,” said a Nvidia representative in a statement.

Nvidia said the statement was in response to a selection committee of the House of Representatives focused on China’s national security threats, which opened an investigation into NVIDIA’s sales on Wednesday. The H20 was introduced by NVIDIA after the Biden administration restricted the exports of AI chips in 2022. It is a decelerated version aimed at complying with the US export controls. UU.

The comment of the Nvidia letter is an indication of how the company will defend its business in Washington, DC, since its technology attracts a greater relationship of scrutiny with national defense and security. The price of the company’s shares fell almost 7% on Wednesday.

Nvidia chips have the fixed market majority for AI applications, and some were used by China Depseek to build R1, which are markets overturned in January.

On Wednesday, the chips manufacturer promoted the taxes he paid, his labor force based in the United States and his role as a technology leader.

The company’s exports even help the United States to fix the Ital Deficit, according to the statement, directly addressing the declared reason of President Trump to present Tarlier this month.

Trump's chip ban hits Nvidia: why Huawei is established, does it harvest the benefits

“Nvidia protects and improves national security through the creation of employment and infrastructure of the US, promotion of US technological leadership, which brings billions of dollars of tax revenues to the treasure of the United States and relieving the mass commercial deficit of the United States,” according to the statement.

A challenge for Nvidia is that H20 was legal for export to China until last week, under the previous rules of the Biden Administration. But the Select Committee of the Chamber said Wednesday that the sale of H20 chips during the past year was effective “the escape.”

“The technology industry supports the United States when it exports to known companies worldwide, if the government felt otherwise, it would instruct us,” said Nvidia in his statement.

The Government is also investigating whether the shipments of restricted chips to China passed through Singapore, the second largest market in Nvidia by billing with just under $ 24 billion in sales in the fiscal year of the company, according to Fassings.

Nvidia clarified on Wednesday that his Singapore income indicates sales with a billing address in the country, or for subsidiaries of US clients.

“The associated products are sent to other places, including the United States and Taiwan, not China,” said Nvidia.

In addition to Chinese export controls and Congress investigation, NVIDIA also faces additional restrictions on what it can export from next month, under the “rules of dissemination of AI” that the Biden administration proposes for the first time.

Look: The success of $ 5.5 billion nvidia can demonstrate that the digestion phase of AI is here

The success of $ 5.5b of NVIDIA can demonstrate that the digestion phase of AI is here, says Niles Investments Dan Niles
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