Nvidia Says $200 Billion CPU Market Includes China as H200 Shipments Still Await Approval
Updated
Updated · Arizona Digital Free Press · May 25
Nvidia Says $200 Billion CPU Market Includes China as H200 Shipments Still Await Approval
14 articles · Updated · Arizona Digital Free Press · May 25
Jensen Huang said Nvidia’s new $200 billion CPU market opportunity includes China, underscoring the company’s expectation of long-term demand there despite U.S.-China tech restrictions.
In Taipei, Huang said H200 chips are licensed by Washington for shipment to China, but Chinese approval is still pending and no deliveries have been made so far.
The China push matters as Nvidia expands beyond GPUs into CPUs for agentic AI, with Huang saying the Vera CPU opens a major new market alongside its flagship AI chips.
Taiwan is central to that buildout: Huang said Nvidia has long supported local partners, will meet TSMC, and is ramping production of its Vera Rubin platform for a busy second half.
Export-control risks remain in focus after Taiwan prosecutors opened a smuggling probe tied to Super Micro servers with Nvidia chips and U.S. prosecutors earlier alleged $2.5 billion in illegal transfers to China.
As China accelerates its domestic chip efforts, can it overcome Nvidia's critical CUDA software advantage to achieve true AI independence?
How does allowing H200 chip sales to China align with the U.S. strategy of curbing its rival's technological advancement?
With the AI industry facing a severe energy crisis, can Nvidia's ambitious growth targets be met before the global power grid breaks?
Nvidia’s $1 Trillion AI Bet: China Roadblocks, Vera Rubin CPU-GPU Integration, and the Geopolitics of Chip Supply
Overview
As of Q2 2026, Nvidia is unable to deliver its H200 AI chips to China despite U.S. government approval, because Beijing has not accepted the required licensing terms and routing arrangements. This regulatory deadlock has forced Nvidia to exclude China from its near-term revenue forecasts and halt H200 production for the Chinese market. The manufacturing capacity at TSMC, previously used for these chips, is now being redirected to Nvidia’s next-generation Vera Rubin platform. This marks a major shift for Nvidia, which once held 95% of China’s advanced chip market and relied on China for a significant share of its revenue.