1、M Foundation Chinas Emerging Frontiers|Asia Pacific China AI:Reviving a giant with H20 chip availabilityMorgan Stanley Taiwan Limited+Charlie ChanEquity Analyst Charlie.C +886 2 2730-1725 Morgan Stanley Asia Limited+Gary YuEquity Analyst Gary.Y +852 2848-6918 Morgan Stanley&Co.LLCJoseph MooreEquity

2、Analyst Joseph.M +1 212 761-7516 Morgan Stanley Taiwan Limited+Sharon ShihEquity Analyst Sharon.S +886 2 2730-2865 Morgan Stanley Asia Limited+Yang LiuEquity Analyst Yang.L +852 2239-1911 Morgan Stanley Taiwan Limited+Howard KaoEquity Analyst Howard.K +886 2 2730-2989 Derrick YangEquity Analyst Derr

3、ick.Y +886 2 2730-2862 Daniel Yen,CFAEquity Analyst Daniel.Y +886 2 2730-2863 Morgan Stanley Asia Limited+Duan LiuEquity Analyst Duan.L +852 2239-7357 Daisy Dai,CFAEquity Analyst Daisy.D +852 2848-7310 Lydia LinEquity Analyst Lydia.L +852 2239-1572 Tom TangEquity Analyst Tom.T +852 3963-1860 Michell

4、e KimResearch Associate Michelle.K +852 3963-0183 The lifting of US export restrictions on NVIDIAs less advanced AI GPUs(e.g.,H20)to China removes a key near-term headwind outlined in our recent China AI Blue Paper.It should now be easier for consumer/enterprise AI applications to develop faster in

5、China,a significant step forward.China AI:Significant step forward.We recently explored the rapid development of AI in China in our Blue Paper report,China AI:The Sleeping Giant Awakens.We noted its diverging path from the US approach,its focus on bringing AI to market,impacting the AI ecosystem and

6、 influencing AI standards,rather than building the most powerful AI capabilities.However,we added that US restrictions on essential AI chips remained near-term headwinds that might lead to some China AI capex cuts.Now,news that the US will permit exports of lower level AI chips(e.g.,H20)to China pro