The partnership underscores Nvidia’s evolving supplier strategy amid mounting geopolitical pressures. While the U.S. has restricted Nvidia from selling its most advanced chips to China, including the top-tier H100 and H200 series, Washington has allowed the export of customized chips like the H20. That chip, built specifically for China to meet U.S. export control guidelines, has now sparked its own controversy. China’s top cybersecurity regulator summoned Nvidia officials earlier this week to discuss alleged “security risks” tied to the H20 chip, casting uncertainty over its future in Chinese markets.

Still, InnoScience’s inclusion in Nvidia’s supply chain is a breakthrough. The Suzhou-based company, founded in 2015 by former NASA engineer Luo Weiwei, specializes in compound semiconductors for power systems used in data centers, electric vehicles, and consumer electronics. Nvidia’s updated supplier list also included U.S. and Japanese heavyweights like Analog Devices, ON Semiconductor, and Renesas Electronics, reflecting growing demand for power efficiency in AI infrastructure.

Market Impact And Future Outlook

The announcement triggered a sharp investor reaction, sending InnoScience stock soaring by the close of trading Friday. Analysts attributed the jump to both the Nvidia endorsement and the broader implications of a Chinese company integrating into one of the world’s most high-profile semiconductor ecosystems.

Amid China’s broader goal to reduce reliance on foreign chip technology and Washington’s campaign to curtail Beijing’s access to advanced semiconductors, InnoScience’s success stands out. Its partnership with Nvidia may also help Beijing make the case for deeper domestic capacity in AI-era components.

InnoScience listed on the Hong Kong exchange in late 2024 and has quickly gained visibility. Founder Luo holds a PhD in applied mathematics and spent over a decade at NASA before launching the firm. The company now appears positioned to become a key player in the global power semiconductor landscape.