Jensen Huang and CC Wei Engage in Lighthearted Banter Amid High-Stakes Talks on China-Specific AI Chips

Nvidia CEO Jensen Huang visited Taiwan to discuss a new AI chip with TSMC CEO CC Wei. Huang joked with Wei about paying for dinner, but the visit was likely tied to Nvidia's new China-specific B30A chip. TSMC manufactures nearly all of Nvidia's cutting-edge chips, cementing their partnership. Nvidia is expected to deliver a strong earnings report on August 27.

Nvidia CEO Jensen Huang's visit to Taiwan Semiconductor Manufacturing Co. (TSMC) in Taipei on July 2, 2025, highlights ongoing discussions about AI chip sales to China and potential new chip developments amidst complex US-China tech relations. Huang met with TSMC CEO CC Wei to discuss Nvidia's latest virtual reality-related chips and its plan to launch new devices, including Spectrum-X Phonics switches. This visit underscores the critical partnership between the world's most valuable chip designer and its key foundry partner [2].

The primary purpose of Huang's trip was to express gratitude for TSMC's collaboration on Nvidia's next-generation AI chip platform, Rubin 2. This platform will adopt TSMC's 3nm process, the most advanced technology being mass-produced. Nvidia is one of TSMC's most important clients, as the Taiwanese chipmaker meets the U.S. company's needs for rolling out the next generation high-efficiency chip [2].

During the visit, Huang and Wei discussed the potential sale of a successor to Nvidia's H20 chip in China. The H20 chip is a downgraded version of Nvidia's Hopper lineup, which has been approved for sales to China by the U.S. government. However, the Chinese government has raised security concerns over the chip. Huang emphasized that the H20 chip has no security backdoor access [2].

The visit comes as Nvidia is developing a new China-specific chip, tentatively named B30A, based on its latest Blackwell architecture. This chip is designed to navigate the complexities of the Chinese AI market, which is worth $84 billion. The B30A chip is expected to be delivered in September 2025 and is part of Nvidia's strategic pivot to tailor AI chips for the Chinese market [1].

Nvidia's strategic pivot to tailor AI chips for the Chinese market has become a masterclass in balancing innovation, regulatory risk, and geopolitical chess. As the U.S.-China tech cold war intensifies, Nvidia's latest product roadmap, centered on the B30A and RTX6000D chips, reveals a calculated effort to retain market share while navigating a labyrinth of export controls and revenue-sharing agreements [1].

For investors, Nvidia's China strategy is a high-reward, high-risk proposition. The 15% revenue-sharing model provides immediate access but introduces financial and legal uncertainties. The company's ability to innovate and adapt to regulatory shifts will determine its success. Key takeaways for investors include diversifying exposure with domestic semiconductor leaders like TSMC or ASML, hedging against geopolitical volatility, and monitoring policy shifts [1].

Nvidia is expected to deliver a strong earnings report on August 27, which will likely provide further insights into the company's performance in the Chinese market and its strategic pivot. Investors should closely monitor Nvidia's ability to navigate the complex regulatory environment and maintain its competitive edge in the AI hardware market.

References:
[1] https://www.ainvest.com/news/nvidia-china-ai-gambit-navigating-regulatory-labyrinths-strategic-innovation-2508/
[2] https://focustaiwan.tw/business/202508220009