On Wednesday, Jensen Huang, Nvidia’s Chief Executive Officer (CEO), expressed his disappointment during a media question-and-answer (Q&A) event at the Mandarin Oriental B2 in Taipei, Taiwan. He stated that the U.S. government’s export controls on H20 chips to China represent a failed policy.
Huang pointed out that about four years ago, at the start of the former U.S. President Joe Biden administration, Nvidia’s market share in China was nearly 95%. Now, it’s dropped to just 50%. As a result, Nvidia has been forced to sell lower-spec products, leading to significant revenue losses.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on April 15, Nvidia projected that costs related to H20 inventory, purchase commitments, and reserves for China could reach approximately 5.5 billion USD. This substantial amount is expected to impact the company’s first-quarter results for the 2026 fiscal year.
Despite the U.S. export regulations targeting China, Huang reaffirmed Nvidia’s commitment to serving the Chinese market. He acknowledged that the H20 ban has severely limited the company’s options but emphasized their determination to persevere. Huang stated that at this point, we’re unsure if it can avoid further performance degradation of the Hopper architecture due to export restrictions, but it remains dedicated to the market.
He further clarified that Nvidia’s current focus is on complying with export controls, assuring that it won’t send graphic processing unit (GPU) designs or any related technology to China, violating these regulations.
Regarding constructing Nvidia’s new Taiwan headquarters, dubbed Constellation, Huang adopted a more measured tone than his earlier enthusiastic announcement during the keynote speech. This shift in approach seems to be in response to growing concerns that Nvidia’s strengthening ties with Taiwan might lead to the exclusion of companies outside the U.S. and Taiwan, including South Korean artificial intelligence (AI) and semiconductor firms, from the Nvidia ecosystem.
Huang’s demeanor turned noticeably serious when addressing these concerns, despite his efforts to maintain a light-hearted tone.
He explained the pressing need for expansion, mentioning that the current office space is so cramped that when one person stands up, another has to sit down.
Huang added that when he was asked why there weren’t enough chairs for everyone, he was told there was simply no space. Further, a larger building would mean more restrooms and shorter lines. He added that he’s mentioning this humorously, but the need for expansion in Taiwan is very real.
On May 19, during his keynote address at the 2025 Computex Taipei, Huang surprised attendees by announcing plans to construct a new headquarters in the Beitou area of northern Taipei.
The name Constellation symbolizes the convergence of diverse technologies and talents, forming a vast ecosystem reminiscent of the stars in the universe.