Demand Strong in China, NVIDIA (NVDA.US) Places Additional 300,000 Units of H20 Chip Orders with TSMC (TSM.US)
According to our sources, NVIDIA (NVDA.US) placed an additional order for 300,000 units of H20 artificial intelligence (AI) chips with TSMC (TSM.US) last week to meet the continuously growing demand in the Chinese market.
Our sources revealed that these new orders will supplement NVIDIA's existing inventory of 600,000 to 700,000 H20 chip units.
In early this month, the Trump administration approved NVIDIA's resumption of sales of its H20 graphics processing units (GPUs) to China, effectively lifting a ban imposed in April.
We learned that NVIDIA requires export licenses from the US government when exporting chips overseas. The company announced in mid-July that it had received assurances from US officials that relevant permits would be issued soon. However, according to two sources, the US Department of Commerce has not yet approved these permits.
H20 chips are specifically designed for the Chinese market because the US imposed export restrictions on more advanced AI processors in late 2023.