Nvidia has firmly denied reports that it is planning to establish a joint venture in China to circumvent the escalating trade restrictions imposed by the Trump administration.
The U.S. semiconductor giant, which generates significant revenue from the Chinese market, dismissed these claims as baseless following a whirlwind visit by CEO Jensen Huang to Beijing and Shanghai earlier this month.
The denial comes amid intensifying U.S.-China tech tensions, where Nvidia faces stringent export controls on its advanced graphics processing units (GPUs), including the recently banned H20 AI chips tailored for Chinese clients. These restrictions are part of broader efforts by the U.S. government to limit China’s access to cutting-edge semiconductor technology, citing national security concerns.
Taiwanese media had reported that Nvidia was considering forming a local joint venture to maintain its CUDA computing platform and other operations in China, a market that contributed approximately $17.1 billion to the company’s revenue in the previous fiscal year. However, a company representative refuted these reports, calling them “irresponsible” and without any factual basis.
Nvidia’s CEO Jensen Huang’s recent visit to China was seen as an attempt to navigate the complex trade environment and maintain business relationships despite the export bans.
The company disclosed that the ban on the H20 chip alone would cost it an estimated $5.5 billion in revenue. This chip had been a critical product enabling Nvidia to continue serving Chinese AI firms under previous export rules.
The U.S. Commerce Department recently imposed new licensing requirements for exporting Nvidia’s H20 chips to China, signaling a significant escalation in the trade conflict. This move follows concerns that China’s AI advancements, such as the DeepSeek-R1 model, have been facilitated by Nvidia’s technology, which has drawn scrutiny from U.S. lawmakers.
Despite these challenges, Nvidia is striving to balance compliance with U.S. regulations while sustaining its presence in the lucrative Chinese market. The company’s denial of joint venture plans underscores its cautious approach amid the geopolitical and regulatory pressures shaping the semiconductor industry.
In summary, Nvidia remains committed to operating within the framework of U.S. export controls and has no current plans to form a joint venture in China as a workaround to trade restrictions. The company continues to adapt its strategies to the evolving tech war landscape while safeguarding its business interests globally.