According to a report by The Information, Nvidia (NVDA, Financial) has informed its Chinese clients that the supply of its H20 chips, designed specifically for the Chinese market, will be limited. The company does not plan to resume production of these chips. Sources indicate that Taiwan Semiconductor Manufacturing Company (TSMC) had initially planned capacity for the H20 chips, but this has been absorbed by other production lines, leaving no immediate possibility for resumption.
Nvidia's CEO, Jensen Huang, mentioned in a recent media event in Beijing that TSMC has shifted its H20 chip production line to manufacture chips for other clients. Starting production from scratch on new chips could take up to nine months. The H20 chip is currently the most advanced AI chip approved for sale to China under U.S. export controls. In April, the U.S. government tightened restrictions on advanced chip exports to China, forcing Nvidia to cancel existing orders and manufacturing capacity reservations with TSMC.
