Huida H20 chip is restricted from export to China by the United States! Estimated loss of $5.5 billion, down 6.3% after hours

The U.S. government announced on 4/14 that Huida (NVIDIA)'s H20 AI chips, which were previously designed for the Chinese market, will need to obtain a special license to export them in the future, and this regulation will take effect "indefinitely." As a result, Huida reported a loss of up to $5.5 billion in the quarter, mainly from inventory, purchase commitments and related reserves. As soon as the news came out, Huida's share price also fell 6.3% in after-hours trading, triggering a comprehensive decline in Asian technology stocks.

Timeline combing, from design compliance to export restrictions

October 2022: The United States restricts the export of high-end AI chips to China, and Huida launches H800 chips in response.

2023: The United States expands restrictions again, and Huida launches another H20 chip, slightly reducing performance to comply with regulations.

Early 2025: Chinese tech giants such as Tencent, Alibaba, ByteDance, etc., have pre-ordered about $16 billion in H20 chips in response to demand.

April 9: Huida received a notice from the U.S. government that H20 chips need to be licensed to export to China.

April 14: The U.S. government confirms that this rule will be implemented indefinitely.

April 15: Huida said in its earnings report that it expects a loss of $5.5 billion due to H20 chip export restrictions.

The picture shows the official document of the US government restricting H20 exports to Huida indefinitely

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H20 chip limited reasons, the United States is worried about China's advanced development

Although the performance of the H20 chip has been tuned to comply with U.S. export regulations, the high-speed memory and connectivity are still large enough to support supercomputers.

The U.S. government is concerned that the chips could be used for Chinese military or surveillance purposes, so it decided to tighten controls. Chinese startup DeepSeek has also used H20 chips to train large AI models, potentially violating existing U.S. export restrictions.

Huida shares fell 6.3% after hours, and technology stocks fell across the board

After the announcement, Huida shares fell 6.3% in after-hours trading. Other chipmakers such as AMD, Samsung Electronics, SK Hynix and others also saw their share prices fall.

In response to export tariff restrictions, Huida also announced on 4/15 that it would inject $500 billion in the United States over the next four years to expand AI-related infrastructure, and cooperate with TSMC and other companies to strengthen domestic production capacity in the United States.

The Sino-US science and technology war continues to heat up, and the global supply chain is facing challenges

In summary, the United States not only pulls overseas supply chains back to home, but also cuts in from the perspective of AI and semiconductors to strengthen restrictions on China's technological development.

On the contrary, under the restrictions of the United States, China is promoting the development of its own chip technology to reduce its dependence on the United States. At the same time, the global technology supply chain is facing a stage of major reshuffle, and investors still need to be vigilant.

( the Trump administration plans to increase restrictions on the sale of Huida H20 chips to China, Huida: may stimulate the development of Chinese chips )

This article Huida H20 chip is restricted from exporting to China by the United States! Estimated losses of $5.5 billion, down 6.3% after hours first appeared in Chain News ABMedia.