Nvidia H200 Chip Return to China Sparks Semiconductor Industry Watch

The possibility of Nvidia's AI chip 'H200' resuming supply to China has emerged following the inclusion of Nvidia CEO Jensen Huang in US President Donald Trump's visit to the country. This development brings both positive expectations and concerns to the domestic semiconductor industry. As President Trump has expressed his intent to demand the opening of the Chinese market for American companies, market attention is focusing on reports suggesting a possible easing of the US government's restrictions on high-performance chip exports to China.

With Nvidia's potential re-entry into the Chinese market becoming more visible, domestic semiconductor companies are busy strategizing. Demand is expected to increase for HBM (High Bandwidth Memory), essential high-performance memory for AI chips. Predictions suggest that HBM demand will surge once H200 supplies begin in earnest. This is expected to provide a short-term boost to the performance of Korean companies like SK Hynix, which supplies HBM3E to Nvidia, and Samsung Electronics, which is rushing to enter the supply chain. Analyses indicate potential revenue growth through increased volume.

However, in the medium to long term, concerns exist about a potential shrinking of market share within China. Korean chips, which have benefited from US high-performance chip export regulations, could lose ground to Nvidia's H200 upon its return. While exports were restricted, Chinese companies had been responding by combining Korean chips with their own graphics processing units (GPUs). But with the resumption of H200 supplies, demand from major Chinese tech giants is likely to heavily favor Nvidia.

While Nvidia CEO's visit to China may stimulate short-term High Bandwidth Memory (HBM) demand, benefiting domestic companies' performance, analyses suggest it could also lead to ceding market leadership in China to the US in the long run. If the Trump administration establishes a model of receiving fees from Nvidia, there is speculation that the South Korean government and companies could face pressure for new payments or technology sharing in negotiations with the US. The influx of Nvidia chips could also invigorate China's artificial intelligence (AI) ecosystem, potentially serving as infrastructure to aid the growth of Chinese memory manufacturers in the long term.