US Eases AI Chip Export Ban: A Boon for South Korean Semiconductor Giants

The United States has officially lifted its restrictions on Nvidia's AI chip exports to China, a move anticipated to significantly benefit South Korean semiconductor giants Samsung Electronics and SK hynix. The decision, confirmed by U.S. Commerce Secretary Howard Lutnick, allows the sale of Nvidia's H20 graphics processing units (GPUs) to China.

This development comes amid broader trade discussions with Beijing, focusing on rare earth elements and aiming to increase China's reliance on American technology. While Nvidia is permitted to sell these units, Lutnick noted, "We don't sell them our best stuff, not our second-best stuff, not even our third-best"—indicating that the H20 is considered Nvidia's "fourth-best" chip.

Previously, an April directive from President Donald Trump had halted H20 exports to China to curb China's access to advanced U.S. technology. This freeze led to a USD 4.5 billion inventory charge for Nvidia and a significant revenue shortfall. Resumed exports are expected to revitalize demand for high-bandwidth memory (HBM) chips, benefitting suppliers Samsung and SK hynix. According to industry experts, the resumption of exports is a short-term positive development for both AI GPU and HBM sectors in China.

(With inputs from agencies.)