India, July 23 -- TrendForce reports that the U.S. government is likely to lift restrictions on NVIDIA's H20 GPU exports to China. This policy reversal is expected to boost demand recovery from local AI and CSPs, with the H20 poised to once again become the primary high-end AI chip in the market. The renewed availability of H20 is also anticipated to drive up demand for HBM.

Following the tightened U.S. restrictions on high-end AI chip exports in April, annual shipments of the H20-developed specifically for the Chinese market-were sharply revised downward. Based on recent developments and the possibility that NVIDIA will push to meet its original shipment targets, TrendForce has raised its estimate of China's procurement ratio for foreig...