Analysts say the deal underscores China’s importance to US chipmakers. Bernstein Research estimates could sell 1.5 million H20 chips in China by 2025, generating up to $23 billion in revenue.
Chinese tech giants such as Baidu, Alibaba, Tencent, and are among the major customers for these chips. However, the deal has generated controversy. Critics, including former US National Security Council adviser Lisa Tobin, have argued that monetizing export licenses would jeopardize the original security justification.
NVIDIA’s H20 Chip is designed to cater to high-performance AI computing needs. AMD’s MI308 Chip aims to compete directly in the growing AI and data center markets. Chinese commentators have accused Washington of using ‘national security’ as a pretext for economic leverage, likening the arrangement to a ‘tollbooth’ for US companies seeking access to the Chinese market.
