NVIDIA Orders New H20 AI GPUs from TSMC to Boost Revenue in China After Months of Decline

Amidst speculation regarding NVIDIA’s potential halt in manufacturing H20 AI chips, recent developments indicate new orders are on the books at TSMC. This comes in response to robust demand stemming from Chinese clients.

NVIDIA’s New H20 AI Orders Driven by Significant Demand from China

NVIDIA appears to be set to revitalize its operations in China, buoyed by recent government changes. The Trump administration has lifted export restrictions on chips bound for China, effectively reopening a critical revenue stream for the tech giant. Despite previous concerns surrounding NVIDIA’s ability to maintain H20 chip production, there seems to be an encouraging shift. A report from Reuters suggests that the company is poised to bolster its inventory to meet the demands of the AI sector in China.

Reports indicate that NVIDIA has secured an order for 300, 000 units of the H20 AI chip from TSMC. This procurement is aimed specifically at catering to the significant demand within the Chinese market. Following this new order, NVIDIA’s total inventory is projected to reach between 600, 000 and 700, 000 H20 chips. This volume is expected to adequately support NVIDIA’s business operations in China for at least two to three quarters, suggesting a promising outlook for the company’s presence in the region.

NVIDIA's H20 AI Accelerators Might Face The Next

Currently, NVIDIA is reportedly performing a “market survey” to assess order volume forecasts for its H20 AI chip. As domestic computing demands continue to surge, it seems likely that Beijing will require increasingly sophisticated solutions. To this end, NVIDIA may focus on introducing new products tailored for this demand. Our projections suggest that the upcoming “Blackwell-based”B20 AI chip and GeForce RTX 6000D GPUs are anticipated to launch in China by late 2025 or early 2026, contingent on the lifting of remaining U. S.export controls.

The story of NVIDIA’s operations in China is still evolving. NVIDIA’s CEO, Jensen Huang, appears determined to establish a strong foothold in this key market. With the recent policy shifts, there seems to be a renewed strategy to integrate more American AI products into China, indicating promising opportunities for NVIDIA in the competitive landscape.

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