Catenaa, Tuesday, July 29, 2025- Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC to cater to the surging demand in China after export controls were lifted.
Quoting sources, Bloomberg said on Tuesday, the new orders with Taiwan’s TSMC would add to the existing inventory of 600,000 to 700,000 H20 chips.
The Trump administration this month allowed Nvidia to resume sales of H20 graphics processing units (GPUs) to China, reversing an effective ban imposed in April designed to keep advanced AI chips out of Chinese hands due to national security concerns.
Nvidia developed the H20 specifically for the Chinese market after US export restrictions on its other AI chipsets were imposed in late 2023.
The H20 does not have as much computing power as Nvidia’s H100 or its new Blackwell series sold in markets outside China.
For comparison purposes, Nvidia sold around 1 million H20 chips in 2024, according to US research firm SemiAnalysis.
Nvidia CEO Jensen Huang said during a trip to Beijing this month that the level of H20 orders it received would determine whether production would begin again, adding that any restart to the supply chain would take nine months.
The Information reported after Huang’s trip was that Nvidia had told customers it had limited H20 stocks available and it had no immediate plans to restart wafer production for the GPU.
Nvidia needs to obtain export licenses from the US government to ship the H20 chips. It was said in mid-July that it had been assured by authorities that it would get them soon.
The US Department of Commerce has yet to approve those licenses, one of the sources and a third source has told Bloomberg.
Nvidia stock was up by 1% on Tuesday Morning, and the stock is up by over 31% so far in the year.
