Nvidia Says China Key To CPU Growth

• Nvidia says China is included in the $200 billion CPU market forecast.
• CEO Jensen Huang called the Chinese AI market “very important.”
• Nvidia ramping production of the Vera Rubin AI platform.
• Chip smuggling investigations intensify around AI export controls.

NVIDIA CEO Jensen Huang said China remains central to the company’s long-term AI ambitions despite escalating U.S.-China technology restrictions, highlighting how important the Chinese market remains for global chipmakers.

Speaking during Nvidia’s investor and media briefing at the Computex 2026 trade show in Taiwan on Friday, Huang said the company’s projected $200 billion global CPU market opportunity includes China as demand for “agentic AI” systems rapidly expands.

“China remains a critical market for AI infrastructure as demand expands beyond graphics processors into CPUs,” Huang said during the briefing.

The comments come as Washington continues tightening export controls on advanced AI technology while simultaneously allowing limited licensed sales of certain Nvidia products to Chinese firms.

According to Reuters, the U.S. government recently approved export licenses allowing around 10 Chinese companies to purchase Nvidia’s H200 AI chips, though shipments have reportedly not yet started because Chinese regulatory approvals are still pending.

Huang also said “Nvidia is ramping up production of its Vera Rubin platform, combining Vera CPUs and Rubin GPUs,” adding that Taiwan’s semiconductor supply chain led by TSMC faces a “very busy second half” of the year.

Why China Still Matters to Nvidia

Despite mounting geopolitical tensions, China remains one of the world’s largest AI and semiconductor markets.

Research firm IDC estimates China’s AI sector could surpass $120 billion by 2028 as cloud computing, robotics and autonomous systems continue expanding.

China’s government has identified semiconductors and AI as strategic priorities under its industrial policy plans, while investment in semiconductor equipment rose 35% year-on-year to about $49.6 billion in 2024, according to SEMI industry data and policy assessments tied to Beijing’s self-sufficiency push.

China remains central to global electronics manufacturing, producing about 35% of the world’s electronics exports, according to World Bank and Chinese customs data.

Why Nvidia Is Still Pushing Into China

Despite U.S. export restrictions, Nvidia continues pursuing the Chinese market because of its scale, long-term AI demand and strategic importance to the global semiconductor ecosystem. China accounted for roughly 32% of global semiconductor consumption in 2025, according to the Semiconductor Industry Association.

Industry analysts say abandoning China could weaken Nvidia’s global market share while accelerating domestic rivals such as Huawei and Biren Technology. China accounted for about 13% of Nvidia’s revenue last fiscal year, while major Chinese cloud and server firms remain deeply integrated into global technology supply chains, according to company filings and industry data.

Nvidia is also focusing on export-compliant products such as the H200 chip, which received U.S. licenses for sales to selected Chinese firms. Nvidia has said no H200 deliveries to China have been completed yet, though approved Chinese buyers reportedly sought more than 400,000 units collectively under limited licensing arrangements, according to company statements and U.S. licensing disclosures.

The strategy reflects a broader industry reality that China remains difficult to replace due to its manufacturing capacity, enterprise demand and role in electronics assembly. Even under tighter regulations, semiconductor companies continue seeking limited commercial access to China while diversifying production and supply chains elsewhere.

China’s Semiconductor Push Continues

China’s semiconductor industry benefits from state support, manufacturing scale and dominance in chip assembly, packaging and rare earth processing. Beijing’s “Made in China 2025” strategy and related state-backed funds have directed more than $150 billion toward semiconductor development and domestic chip production, according to Chinese government documents and industry estimates.

However, China still depends heavily on foreign technology for cutting-edge chip manufacturing, especially advanced lithography systems needed for chips below 5-nanometer production.

U.S. export restrictions targeting AI chips and advanced semiconductor equipment have slowed parts of China’s high-end chip ambitions, though analysts say continued state support and domestic demand could still help Chinese firms narrow the gap over time.

Even amid rising tensions between Washington and Beijing, Nvidia’s latest comments highlight a broader reality facing the global tech industry: China remains too large, too connected and too strategically important for semiconductor companies to fully leave behind.