Nvidia Faces IDR 92.5 Trillion In Burden After US Restricts Chip Sales To China

JAKARTA - The Nvidia company experienced a 6% decline in shares following the announcement of restrictions on H20 chip exports to China by the US government. These restrictions are related to US efforts to maintain excellence in the AI race, where the H20 chip is considered potentially used in China-based supercomputers.

Now Nvidia must take a burden of 5.5 billion US dollars (Rp92.5 trillion) related to H20 chip products that have been ordered or there is a purchase commitment.

On April 15, 2025, Nvidia announced that it would list a payload of $5.5 billion after the US government restricted exports of the H20 chip to China, a major market for one of their most popular chips.

The Nvidia H20 chip has become the main focus in US export control due to its role in artificial intelligence (AI) technology. Previously, Nvidia designed chips to approach the limits set by the US.

The H20 chip is Nvidia's most advanced chip in China and is critical in the company's efforts to stay involved with China's fast-growing AI industry. Chinese companies such as Tencent, Alibaba, and ByteDance have stepped up H20 chip orders due to growing demand for low-cost AI models from DeepSeek startups.

Although the H20 chip is not as fast as the Nvidia chip sold outside China in terms of AI model training, it is quite competitive in the interference stage, namely the stage where the AI model provides answers to users.

Inference is now becoming the largest part of the AI chip market, and Nvidia CEO Jensen Huang last month stated that Nvidia is in a good position to dominate this change.

However, on April 14, 2025, Nvidia revealed that the US government informed them that the H20 chip required a license to be exported to China, and this rule would be enforced indefinitely.

The reason for these restrictions is that the H20 chip potential is used in the construction of a supercomputer in China, although this chip has lower computing capabilities than other Nvidia chips. Nonetheless, its high connectivity speed allows H20 chips to be used in supercomputers.

The US government has been limiting chip sales to supercomputers to China since 2022, and there is an argument that some Chinese companies, such as Tencent, have installed H20 chips in facilities used to train major models, which are likely to violate existing restrictions.

Nvidia stated that they could not comment on how much license might be granted by the US government. In addition, they also revealed that the 5.5 billion US dollars of burden is related to H20 products in inventory, commitment to purchases, and related reserves.

The news comes after Nvidia announced its plans to build an AI server worth up to $500 billion in the US over the next four years, in collaboration with partners like TSMC, as part of the Trump government's push to support local production.

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