U.S. Chip Export Policy Shift Rattles Chinese Semiconductor Stocks

Chinese chipmakers led declines in Asian tech stocks after reports surfaced that the Biden administration may allow Nvidia to export its H200 AI chips to China. Semiconductor Manufacturing International Corp. (SMIC) and Hua Hong Semiconductor fell alongside domestic AI chip designer Cambricon Technologies, reflecting investor concerns about renewed competition from Western technology.

The H200 represents a significant upgrade over currently permitted exports, with double the performance of Nvidia's H20 chips. While still using older Hopper architecture rather than cutting-edge Blackwell technology, the H200's enhanced memory bandwidth poses a competitive threat to China's indigenous chip development efforts.

This potential policy reversal follows Nvidia's record quarterly earnings, where data center revenue—driven by AI chip demand—surged 427% year-over-year. Market analysts suggest any export easing WOULD particularly impact Chinese firms developing alternative AI accelerator chips.