Demand is surging in China for the repair of Nvidia’s high-end AI chips—such as the H100 and A100—even though these products are officially banned for export to China by U.S. authorities.
Shenzhen-based tech firms say they’re now repairing hundreds of these GPUs each month, including H100 chips that were never legally sold in China. The growth of this unofficial repair sector strongly suggests widespread smuggling of Nvidia chips into the country, with Chinese government and military buyers reportedly among the recipients.
The U.S. has banned exports of these chips to curb China’s tech advances, prompting bipartisan bills to tighten tracking. Nvidia can’t offer support for restricted products in China, leaving local repair shops to fill the gap—charging up to $2,800 per fix.
Despite legal alternatives like the H20, Chinese firms still favour banned chips for AI training, and demand is now shifting to Nvidia’s high-end B200 models.
