A Chinese chip company has received a rare U.S. approval at a time of tight tech controls. Black Sesame Technologies (HK:2533), listed in Hong Kong, said its Huashan A2000 driving chip passed reviews by the U.S. Department of Commerce and the U.S. Department of Defense, which allow global sales outside China. This type of approval is unusual under current policy, and the news pushed Black Sesame shares up more than 11% in Hong Kong trading.
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The company said the review took nearly a year and involved repeated technical questions from U.S. officials. The Huashan A2000 completed tape out in January 2025 and is built on 7-nanometer process technology. Black Sesame said it is the only Chinese chipmaker so far to receive this level of U.S. clearance.
Why the Approval Matters for Investors
First, the chip is designed for cars rather than data centers, which likely reduced review risk. It runs AI models inside vehicles and supports driving tasks such as vision and sensor fusion. Because it is limited to in-car use, regulators may view it as less sensitive than high-end AI training chips.
Second, U.S. policy has shifted away from blocking all advanced nodes. Controls now focus more on large-scale AI systems and cloud-level compute. In that context, Black Sesame markets the A2000 as a local option to Nvidia Corporation’s (NVDA) Orin chips, which are widely used in smart vehicles and deliver about 254 TOPS of performance. While Black Sesame claims higher peak output, software and safety tools remain key factors.
BYD Adds Scale and Validation
In addition, Black Sesame confirmed earlier this year that BYD (BYDDF) is using its chips in mass production. Although BYD develops much of its own driving technology, the partnership provides Black Sesame with volume and real-world data. The chipmaker also works with major Chinese automakers, including FAW, Dongfeng (DNFGF), Geely (GELYF), and Hongqi (HK:1378).
The A2000 family includes three versions aimed at different driving levels, ranging from urban assist to advanced autonomy. Over time, broader deployment could help Black Sesame improve cost efficiency and product stability. In summary, this approval does not mark a change in U.S. chip policy, but it does show that narrow and product-specific reviews are still possible. At the same time, execution in China’s auto market remains the main investment focus.
Using TipRanks’ Comparison Tool, we’ve lined up and compared notable U.S. chipmakers to gain an in-depth look at each stock and the broader chip industry.
