Jensen Huang, co-founder and CEO of Nvidia Corp., will be held at the opening ceremony of Siliconware Precision Industries Co. (SPIL) Tan Ke Plant, Taiwan, on Thursday, January 16th, 2025.
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The day after Nvidia reveals, there will be a $5.5 billion cost associated with cancelled orders for H20 tips. The government said this week that it would require a license to export to China.
“The US government is directing American companies about what and where they can sell – we are following the directions in the government’s letter,” a representative of Nvidia said in a statement.
Nvidia said the statement corresponds to the House Selection Committee, which focuses on national security threats from China, which began investigating Nvidia’s sales on Wednesday. The H20 was introduced by NVIDIA in 2022 after the Biden administration restricted exports of AI chips. This is a delayed version intended to comply with US export controls.
Nvidia’s brief comments show how they protect their operations in Washington, DC. The company’s share price fell almost 7% on Wednesday.
Nvidia’s chips make up a large part of the AI ​​applications market, some of which were used in January by China’s Deepseek to build the R1 that ruined the market.
On Wednesday, the chipmaker touted the taxes he paid, the US-based workforce and the role of technology leaders.
The company’s exports could even help the US correct the trade deficit, the statement said it directly addresses the reasons President Trump said earlier this month to introduce tariffs.
“Nvidia will protect and strengthen national security by creating US employment and infrastructure, promoting US technology leadership, bringing billions of dollars in tax revenue to the US Treasury and reducing the massive US trade deficit,” the statement said.
One of the challenges for Nvidia is that until last week, H20 was legal to export to China under previous Biden management rules. However, the House Selection Committee said Wednesday that sales of H20 chips over the past year were effectively a “loop hole.”
“The technology industry supports the United States when exporting to well-known companies around the world. If the government feels that it’s not, it will instruct us,” Nvidia said in its statement.
The government is also investigating whether restricted chip cargo to China has passed Nvidia’s second largest market, Singapore, by charging just $24 billion by charging Nvidia’s second largest market, according to the filing.
Nvidia revealed on Wednesday that Singapore’s revenues show sales with domestic billing addresses, often for subsidiaries of US clients.
“Related products will be shipped elsewhere, not to China, but to the US and Taiwan,” says Nvidia.
In addition to China’s export control and a survey of Congress, NVIDIA is also facing additional restrictions on what can be exported from next month under the “AI Proliferation Rules” originally proposed by the Biden administration.
Watch: Nvidia’s $5.5 billion hit may prove that the AI ​​digestion phase is here
