The H200 chip, unveiled two years ago, has more high-bandwidth memory than its predecessor, the H100, allowing it to process data more quickly. File
| Photo Credit: Reuters
U.S. President Donald Trump said on Monday (December 8, 2025) that he will allow Nvidia to ship its H200 chips to approved customers in China and other countries, under conditions that he said would allow for continued strong national security.
The decision appears to settle a U.S. debate about whether Nvidia and rivals would maintain their global lead in AI chips by selling to China or withholding chips, though Beijing has told companies not to use U.S. technology, leaving it unclear whether Trump’s decision would lead to new sales.
Nvidia shares rose 2% in after-hours trading after Trump made the announcement on Truth Social, following a 3% rise during the day on a report by Semafor. Trump said that he had informed President Xi Jinping of China, where Nvidia’s chips are under government scrutiny, about the move and he “responded positively,” according to Mr. Trump’s post.
Mr. Trump said the U.S. Commerce Department was finalizing details of the arrangement and the same approach would apply to other AI chip firms such as Advanced Micro Devices and Intel. Trump’s post said the fee to be paid to the U.S. government was “$25%” and a White House official confirmed he meant 25%, higher than the 15% proposed in August.
“We will protect National Security, create American Jobs, and keep America’s lead in AI,” Mr. Trump wrote on Truth Social. “NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal.”
Mr. Trump did not say how many H200 chips would be authorized for shipment or what conditions might apply, only that exports would occur “under conditions that allow for continued strong National Security.”
Administration officials consider the move a compromise between sending Nvidia’s latest Blackwell chips to China, which Mr. Trump has declined to allow, and sending China no U.S. chips at all, which officials believe would bolster Huawei’s efforts to sell AI chips in China, a person familiar with the matter said.
“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” Nvidia said in a statement. Intel declined to comment.
The U.S. Commerce Department, which oversees export controls, and AMD did not respond to requests for comment.
A White House official said that the 25% fee would be collected as an import tax from Taiwan, where the chips are made, to the United States, where the chips will undergo a security review by U.S. officials before being exported to China.
Published – December 09, 2025 04:20 am IST