Nvidia’s position in Asia is under fresh scrutiny as Chinese authorities weigh in on its AI chips, SoftBank explores options with Intel’s manufacturing arm, and Japan’s power semiconductor makers face challenges in forming alliances.
Nvidia’s “advice” moment in China
Despite a public warning from Beijing over alleged “security” issues with Nvidia’s H20 — a downgraded AI chip designed for China — local demand from major tech platforms remains strong, according to industry sources cited by Nikkei Asia. Nvidia recently agreed with US President Donald Trump to pay 15 per cent of H20 sales to the US government to resume selling in China. Soon after, Chinese groups including ByteDance, Alibaba, Tencent and Baidu were summoned to discuss their use of Nvidia chips and to encourage greater reliance on domestic options, sources said.
The guidance amounted to “advice” rather than a ban, and pent-up demand for H20 and upcoming Blackwell chips persists, the report added. According to the Financial Times, the world’s dominant AI chip provider has been feeling intensified geopolitical pressure around its China strategy.
SoftBank–Intel discussions and Japan’s power chip puzzle
SoftBank founder Masayoshi Son held talks with Intel’s chief executive about buying the US group’s faltering contract chipmaking business in the weeks before SoftBank’s $2bn share investment was announced, the FT reported, citing multiple people familiar with the talks. The conversations with Intel chair Lip-Bu Tan, appointed in March, ranged from joint ventures to a minority stake. Two people said the latest deal does not rule out a larger transaction around Intel’s foundry business later. SoftBank and Intel declined to comment. The White House said it was “ironing out the details” of a plan for the US government to take a 10 per cent stake in Intel.
Japan’s fragmented power semiconductors
Japanese power chip makers are struggling to build a united front as Chinese rivals rise, Nikkei Asia reported. A flagship alliance between Toshiba and Rohm has yielded little beyond a co-manufacturing project, with deeper collaboration talks that began in early 2024 described by sources as having “stalled.” Japan’s five major players — Mitsubishi Electric, Fuji Electric, Toshiba, Rohm and Denso — each hold less than 5 per cent of the global market. Power semiconductors, crucial for grids and electric vehicles, are less advanced than AI chips but remain essential. Meanwhile, China is ramping mature-chip capacity and nudging its auto supply chain toward local power chips.
Chinese tech suppliers’ shares have rallied since Washington and Beijing agreed to a tariff “truce,” with the ChiNext Index up nearly 26 per cent over the period and individual winners tied to AI server supply chains standing out, Nikkei Asia wrote.
