Nvidia's H20 chip gets the green light for China after US policy shifts; TSMC breaks records and joins the trillion-dollar club; and Taiwan's tech community quietly backs a grassroots recall movement tied to democratic and cross-strait concerns.
1. Nvidia's H20 chip cleared for China
Nvidia's H20 AI chip, previously restricted under U.S. export controls, has reportedly been cleared for sale to China following a significant policy reversal by the Trump administration. The decision reflects a confluence of political lobbying, strategic positioning, and ongoing trade negotiations.
Nvidia CEO Jensen Huang played a central role, warning US officials that continued restrictions would push Chinese companies—such as Huawei—to develop domestic alternatives and lock out US suppliers from a vital growth market. Huang argued that the H20 is a lower-tier chip, substantially less powerful than Nvidia's top AI products sold elsewhere, and that continued bans would harm US tech leadership.
Support also came from David Sacks, a prominent tech investor and advisor to the White House on AI policy. Sacks reportedly echoed concerns about China's AI capabilities—particularly Huawei's CloudMatrix 384 system—and advocated for a more nuanced approach to export policy. Commerce Secretary Howard Lutnick is said to have tied the approval to broader trade talks, calling it a strategic move to ensure Chinese developers remain dependent on US technology. Trump reportedly gave final approval after a meeting with both Huang and Sacks earlier this month.
Jensen Huang in Beijing. Credit: AFP
2. TSMC joins the US$1 trillion club
Taiwan Semiconductor Manufacturing Co. (TSMC) delivered blockbuster second-quarter results, riding a wave of global demand for AI and high-performance computing chips. Revenue reached a record US$30.07 billion—up 38.6% year-on-year—with net income surging over 60%. The company's 3nm and 5nm technologies now account for more than 70% of its wafer revenue.
CEO C.C. Wei confirmed mass production of 2nm chips will begin in the second half of 2025, with capacity expansions also accelerating in the US and Japan. The momentum helped push TSMC's market capitalization past the US$1 trillion mark for the first time, briefly peaking at US$1.2 trillion based on ADR performance. The company became the first Asian firm since PetroChina in 2007 to sustain such a valuation.
3. Taiwan's recall election draws tech industry attention
A wave of grassroots-led parliamentary recall campaigns is shaking Taiwan's political landscape—and drawing support from parts of the tech sector. The movement, targeting several Kuomintang (KMT) lawmakers, has been characterized by its organizers as a defense of democratic integrity and legal process.
One high-profile supporter is Robert Tsao, the outspoken former UMC co-founder, who has backed the recalls while denying coordination with the ruling Democratic Progressive Party (DPP). Tsao criticized recent legislative maneuvers by KMT lawmakers as authoritarian and procedurally unjust, claiming they undermine the rule of law and benefit Beijing's strategy to sow chaos in Taiwan before any military aggression.
Another notable voice is Pegatron Chairman T.H. Tung, who returned to his hometown of Hualien to publicly support the recall of local KMT legislator Fu Kun-chi. Tung emphasized the need to make room for younger political talent, calling the vote a potential "milestone in democratic progress."
While business leaders typically avoid political involvement, the recalls have sparked quiet support among tech workers as well. Posts on social media platforms like Threads show engineers from TSMC, UMC, Broadcom, Micron, and other companies openly backing the movement—though many remain cautious about discussing politics at work.
T. H. Tung, Chairman of Pegatron. Credit: Digitimes
Article edited by Jerry Chen
