The U.S. Commerce Department said last week that it would require export licenses for Nvidia's H20 graphics processing units in a move that has halted the product's sale to China. The move is expected to boost demand for Chinese companies like Huawei as they seek to provide a domestic alternative to Nvidia.

SINGAPORE/BEIJING (Reuters) -Huawei Technologies plans to begin mass shipments of its advanced 910C artificial intelligence chip to Chinese customers as early as next month, two people familiar with the matter said.

Nvidia's China strategy recently suffered a major blow as the US Department of Commerce placed its China-specific H20 chip under indefinite export control. The move came just a day after Nvidia pledged support for President Donald Trump's "Made in USA" initiative,