Nvidia kept some China customers in the dark about new US chip clampdown sources say

SINGAPORE - Nvidia did not warn at least some major customers in advance about new US export rules it was told about a week ago, requiring it to obtain licences to sell its China-focused artificial intelligence (AI) chip, according to two sources familiar with the matter.

The US chipmaker disclosed on April 15 that American officials had informed the company on April 9 that its H20 chip would require an export licence for sales to China.

The move to restrict H20 shipments marks Washington’s latest effort to limit China’s access to advanced semiconductors, as the US seeks to maintain its edge in AI technology.

Major Chinese cloud companies were still anticipating H20 deliveries by the year end, unaware of the impending restrictions, according to the two sources, who said Nvidia’s China sales team also did not appear to be informed ahead of the public announcement. They spoke on condition of anonymity because of the sensitivity of the matter.

Nvidia said in a statement on April 16 that it adheres by US export laws on where it can sell its processors. “The US government instructs American businesses on what they can sell and where – we follow the government’s directions to the letter,” it said.

The export controls threaten Nvidia’s business in China, one of its largest markets. Nvidia had secured US$18 billion (S$23.6 billion) of H20 orders since the start of 2025, according to one of the two sources and a third source.

China generated US$17 billion in revenue, or 13 per cent of Nvidia’s total sales, in its last fiscal year that ended on Jan 26.

Nvidia shares fell 6 per cent in after-hours trading on April 16 after it said it would take up to US$5.5 billion of charges in the first quarter ending April 27