Trump administration trade policies introduce sweeping restrictions on semiconductor exports to China with implications across all chip makers.

The Donald Trump-led United States government's decision to impose new licensing requirements for chips exported to China could cost semiconductor giants such as Nvidia and Advanced Micro Devices Inc. (AMD) billions, according to reports. Nvidia's H20 chips, AMD's MI308 artificial intelligence chips, and other equivalent products are likely to be severely impacted once the US Commerce Department formally issues its notice. Speaking to Reuters, a US Commerce Department spokesperson said the department is "committed to acting on the President's directive to safeguard our national and economic security."

The Trump administration's policy change could cost Nvidia "billions of dollars" on a product that was designed to comply with older restrictions, according to a Bloomberg report. In its filing with the exchanges on April 15, Nvidia stated that if implemented, the move would cost the AI chip maker over $5.5 billion in charges — largely from limits placed on its H20 AI chip exports to China. The US government informed Nvidia of the development on April 14. A representative for the White House did not immediately respond to Bloomberg's request for comment.

Nvidia has warned that any further push and restrictions would only make China determined to develop technology independent of the US and provide competition for American companies. These latest rules are a sign that the Trump administration will stay the course on the US government's approach to Chinese tech development. The restrictions follow earlier sanctions on dozens of Chinese firms that Trump officials allege are aiding Beijing's military tech efforts, and represent a continuation of policies initiated in October 2022, when the US government under Joe Biden barred US makers from selling their most advanced products to China over security concerns amid increased AI advancement and applications.