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Trump's Nvidia H200 approval for China may benefit Korean HBM suppliers

Published: 09 Dec. 2025, 17:10 Updated: 09 Dec. 2025, 18:54

Nvidia CEO Jensen Huang, right, speaks alongside U.S. President Donald Trump about investing in the United States at the White House in Washington on April 30. [AFP/YONHAP]

U.S. President Donald Trump has approved the export of Nvidia’s H200 AI chip to China, opening the door to the import of higher-performing hardware into the Chinese market — and with it, a potential boon for Korean chipmakers.

“I have informed President Xi, of China, that the United States will allow Nvidia to ship its H200 products to approved customers in China, and other countries, under conditions that allow for continued strong national security,” Trump said on his social media platform Truth Social on Monday.

The H200 is based on Nvidia’s Hopper architecture, which predates the latest Blackwell design. According to the Washington-based think tank Institute for Progress, the H200 delivers up to six times the performance of the H20, which is currently approved for export to China. That makes it the most advanced AI chip permitted for sale to China since U.S. export restrictions were implemented in 2022.

Trump's decision is expected to benefit Korean chipmakers SK hynix and Samsung Electronics, both of which supply high bandwidth memory (HBM) to Nvidia. The H200 is equipped with 8-layer HBM3E memory, and increased demand could result in higher sales for the Korean firms.

“While the move may boost the competitiveness of Chinese AI firms like DeepSeek, it could reduce the domestic market share for Chinese companies developing their own AI chips,” said an industry source. “The impact on Korean companies will depend on how much Nvidia chip imports the Chinese government allows under its domestic use mandate.”

The Nvidia logo and Chinese flag are seen in this illustration from Aug. 27. [REUTERS/YONHAP]

Beijing’s mandate on the use of domestically made chips in core sectors came in response to the U.S. restrictions. Since its implementation, Chinese companies such as Huawei have continued developing semiconductor technologies, releasing their own AI chips as imports of HBM and chipmaking equipment remain restricted.

In response, Washington appears to be shifting from a hardline approach to a strategy aimed at deepening China’s reliance on U.S. technology. The decision reflects Nvidia CEO Jensen Huang’s argument that loosening export controls is necessary for the United States to win the global AI race. Under this framework, Washington allows sales of AI chips that are one generation behind the latest technology.

“Authorizing the export of H200 chips is an implicit acknowledgment that U.S. regulatory leverage has weakened,” said Jeon Byung-seo, the director of the China Economic and Financial Research Institute. “With Huawei now developing advanced alternatives like the 910C chip, Washington is opting to monetize its advantage while leveraging the move in broader negotiations.”

As part of the export deal, Nvidia will be required to remit 25 percent of its China-generated revenue to the U.S. government — a notable increase from the previously discussed 15 percent. Trump said the funds would be used to support domestic job creation and strengthen manufacturing in the United States.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HAE-LEE [[email protected]]