Jensen Huang 'Optimistic About China Exports'... Bright Outlook for Samsung and SK HBM Orders

Jensen Huang: "Nvidia in Talks to Sell Blackwell in China"
Blackwell Chips for China Expected to Have 30-50% Lower Specs
Sales Could Begin as Early as Next Month
90% of Nvidia's HBM Supplied by Samsung and SK Hynix
Positive Outlook for Korean

Jensen Huang, CEO of Nvidia, announced that the company is in discussions with the U.S. government regarding the export of its artificial intelligence (AI) chips to China. Following the previous day's announcement that Nvidia's second-quarter earnings exceeded market expectations, the possibility of exports to China has also been raised, which is expected to impact the performance of domestic high-bandwidth memory (HBM) companies such as Samsung Electronics and SK Hynix.

On August 28 (local time), CEO Huang stated in an interview with Fox Business in the United States that the company is negotiating with the Trump administration about exporting its AI chip, Blackwell, to China. Huang expressed optimism about the discussions and conveyed confidence that the export deal would be finalized soon. Although the timing and quantity have not been confirmed, foreign media reported that the Blackwell chips destined for China will be produced with specifications 30% to 50% lower than the existing products. Some sources predicted that sales could begin as early as next month. Blackwell has never been officially exported to China before, and this negotiation could lead to its first sale in the country, drawing significant attention. The domestic industry believes that if shipments to China become a reality, it will have a positive effect on the expansion of HBM orders for both SK Hynix and Samsung Electronics.

Ahn Ki-hyun, Executive Director of the Korea Semiconductor Industry Association, said, "This is good news for SK Hynix and Samsung Electronics, which supply nearly 90% of all HBM used by Nvidia," adding, "If demand for Nvidia chips increases in China, our HBM orders will also rise."

The Blackwell chips for China are also expected to use lower-spec internal components, with the majority view being that HBM3E 8-layer or lower will be used instead of the latest HBM3E 12-layer. Both SK Hynix and Samsung Electronics supply the HBM3E 8-layer product. Bloomberg reported in January that "Samsung Electronics received approval from Nvidia to supply HBM3E 8-layer chips a month ago."

Industry attention is focused not only on Blackwell but also on the resumption of H20 sales in China. H20 is a product that Nvidia developed with reduced performance to meet regulatory standards after the U.S. blocked exports of high-performance AI chips to China. The Trump administration halted sales in April for national security reasons but allowed them again in July. As a condition, Nvidia agreed to pay 15% of its China export revenue as tax to the U.S. government. However, export approval procedures have been delayed, and the Chinese government has ordered domestic companies to stop purchasing the H20, effectively halting production and sales.

Foreign media and the industry expect this situation to be resolved soon. CEO Huang said, "We have not received any orders yet, but we are expecting them," and added, "The H20 offers excellent price-to-performance, cost efficiency, and AI token generation capabilities."

If H20 exports return to normal, domestic HBM suppliers are expected to further expand their supply. However, there is also the possibility of a new competitive landscape emerging. Until now, Nvidia has used HBM3 supplied by Samsung Electronics in the H20, but it is reportedly considering adopting HBM3E to enhance performance. In this case, Samsung Electronics may continue as the supplier, or SK Hynix could be newly designated. An industry official said, "It is positive that opportunities in the Chinese market have reopened, but from a supplier's perspective, this will depend on Nvidia's decision," and added, "With various variables continuing to emerge recently, we are closely monitoring the situation as it develops."

This content was produced with the assistance of AI translation services.