May 21, according to a report by the Financial Times of the UK, at the press conference of the Taipei International Computer Show, Jensen Huang, CEO of NVIDIA, said, "Four years ago, NVIDIA's market share in China was as high as 95%. Today it is only 50%." He stated, "The rest are all local Chinese technologies. Even without NVIDIA, they would still be using a lot of indigenous technology."

Huang Renxun predicted that by 2026, China's AI market size will reach $50 billion. He believed that China will remain a huge opportunity for NVIDIA in the coming years. Huang Renxun mentioned that China has 50% of the world's AI researchers, and he hoped that AI researchers could continue to develop on the basis of NVIDIA.

NVIDIA official website

In April this year, the Trump administration announced a ban on NVIDIA selling H20 chips to China. This chip is a performance-degraded version of AI chips specifically launched by NVIDIA to comply with previous export control regulations. This move led the company to write down assets worth $5.5 billion (approximately RMB 39.632 billion). Huang Renxun reiterated that NVIDIA has no plans to launch the "Hopper" series products in the Chinese market, stating that the company has "significantly degraded the performance of the chips."

Analysts at Bloomberg Industry Research said in a report that NVIDIA's write-down means that the company may lose $14 to $18 billion (approximately RMB 1.00881 trillion - 2.25293 trillion) in revenue this year. The analyst stated, "If these restrictions continue, NVIDIA's exposure to the data center business in China may return to normal, falling to low single digits, similar to the level before the increase in H20 production in early 2024."

In addition, Huang Renxun also severely criticized the Biden administration's new AI chip proliferation control regulations. These regulations were originally scheduled to take effect on May 15 and proposed a three-tier licensing system for AI chips used in data centers. Huang Renxun said, "It turns out that the fundamental assumptions underlying the original formulation of the AI chip proliferation control regulations are flawed. If the United States wants to maintain its leadership position, we need to accelerate the diffusion of technology to the maximum extent, not restrict it."

The Trump administration has indicated that it will revoke the proposed technology proliferation control regulations and is drafting new regulations to allow American technology to thrive. It is unclear when the new regulations will be finalized, but government officials have warned that it will take some time for them to be implemented.

According to NVIDIA's annual report, China is NVIDIA's fourth largest sales region, after the United States, Singapore, and others. In the 2024 natural year ending January, NVIDIA's revenue from the Chinese region reached $17.108 billion (approximately RMB 123.277 billion), which is the highest in history, up 66% from $10.306 billion (approximately RMB 74.263 billion) the previous year. Currently, 53% of NVIDIA's revenue in fiscal year 2025 comes from outside the United States.

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Source: https://www.toutiao.com/article/7506811515253965375/

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