By Elsie Kamsiyochi
Chip giant is continuing to bet heavily on China’s long-term importance, even as political tensions and export restrictions between Washington and Beijing complicate the global technology race. Speaking in Taipei on Saturday, CEO said the company’s projected $200 billion central processing unit (CPU) market opportunity includes China, signaling confidence in one of the world’s largest technology markets.
The comments come at a critical time for Nvidia, which has become one of the world’s most valuable companies thanks to booming demand for artificial intelligence chips. While Nvidia is best known for its graphics processing units (GPUs) — the powerful chips used to train advanced AI models — Huang said the company is now aggressively expanding into the CPU business as artificial intelligence evolves.
As businesses increasingly adopt agentic AI systems, capable of performing tasks autonomously and making decisions without constant human direction, demand for advanced computing infrastructure is broadening. That shift is creating opportunities not only for GPUs but also for CPUs, which remain essential for running data centers, processing workloads, and coordinating AI systems.
Earlier this week during Nvidia’s earnings call, Huang told investors that the company’s new Vera CPU architecture opens access to an entirely new market worth an estimated $200 billion. When reporters in Taipei asked whether China was part of that forecast, Huang responded simply: “I would think so.”
The statement underscores Nvidia’s continued interest in maintaining a foothold in China despite increasingly strict U.S. export controls aimed at limiting Beijing’s access to cutting-edge AI technology. China remains one of the world’s largest semiconductor markets, and major tech firms there continue to seek high-performance chips to power AI ambitions.
Nvidia Still Hoping to Sell H200 AI Chips in China
Huang also expressed optimism about Nvidia’s ability to expand sales of its powerful H200 AI chips in China. Although the U.S. government has granted licenses allowing shipments of the chips, approval from Chinese authorities has yet to fully materialize.
“It would be terrific to serve that market,” Huang said, describing China as “very important” and emphasizing its enormous scale.
The issue has become increasingly political. Earlier this month, U.S. President held talks with Chinese President in Beijing, but no major breakthrough emerged for Nvidia’s China business.
Reports have indicated that around ten Chinese companies have already received U.S. clearance to purchase Nvidia’s H200 chips, though deliveries have not yet begun. This delay highlights the complicated balancing act Nvidia faces: growing international demand for its technology while navigating geopolitical restrictions designed to slow China’s AI progress.
Taiwan Supply Chain Set for Busy Second Half
Huang’s visit to Taiwan comes ahead of the annual Computex technology exhibition, where many of the world’s biggest semiconductor companies showcase new innovations.
He revealed that Nvidia is ramping up production of its highly anticipated Vera Rubin platform, which combines the company’s Vera CPU technology with its next-generation Rubin GPU architecture. According to Huang, the launch is expected to create “a very busy second half” for Taiwan’s semiconductor supply chain.
Taiwan plays a critical role in Nvidia’s success. The company relies heavily on manufacturing partners such as , the world’s largest contract chipmaker, to produce advanced semiconductors powering AI systems worldwide. Huang confirmed he plans to meet with TSMC executives during his visit.
His remarks also came shortly after rival chipmaker announced plans to invest more than $10 billion into Taiwan’s AI ecosystem to strengthen chip production and strategic partnerships.
While Nvidia has not announced a comparable investment, Huang suggested the company has already been heavily supporting Taiwan’s technology ecosystem behind the scenes.
“We haven’t announced anything in the past,” he said, “but we’ve invested in and supported our partners here far more than that.”
Smuggling Concerns Add Pressure
Nvidia is also facing scrutiny over reports of illegal exports involving AI hardware.
Taiwanese prosecutors are currently investigating allegations that high-end AI servers manufactured by and powered by Nvidia chips were illegally exported in violation of U.S. restrictions.
When questioned about what Nvidia could do to stop advanced AI chips from being diverted into unauthorized markets, Huang defended the company’s compliance efforts, saying Nvidia is “very rigorous” about ensuring partners understand and follow export laws.
Still, he emphasized that partners must ultimately take responsibility for their own operations.
“Super Micro has to run their own company,” Huang said, adding that he hopes firms improve regulatory compliance to prevent similar incidents in the future.
The controversy follows charges brought earlier this year by the U.S. Justice Department against individuals linked to Super Micro, accused of helping smuggle billions of dollars’ worth of restricted AI technology into China.
As Nvidia pushes deeper into AI infrastructure and next-generation computing, the company’s future growth may increasingly depend on how successfully it navigates the complex relationship between global demand, geopolitical tensions, and tightening technology regulations.
Source Reuters