Nvidia is ramping up production of a China-specific AI chip via its Taiwan-based contract manufacturer, with strong demand prompting it to not rely on existing inventories, Reuters reported.
The news agency stated Nvidia ordered 300,000 H20 chips from Taiwan Semiconductor Manufacturing Co, with stocks of the chip at between 600,000 and 700,000. In 2024, Nvidia sold about a million H20 chips in the mainland.
In mid-July, the company said US authorities confirmed it would be given a licence to resume sales of its H20 chip in China. But opposition to the re-opening of sales drew sharp criticism from security experts and politicians in the US.
The US government noted the move to resume H20 sales, which from April required an export licence, was part of negotiations with China over rare earth minerals, Reuters wrote.
Nvidia reconfigured its high-end offerings for China after the US imposed export controls on the H100 in October 2023.
Source: Mobile World Live
Image Credit: Nvidia