Nvidia (NVDA) Orders 300,000 H20 Chips from TSMC (TSM) for China Market

by MarketNewsData

Nvidia (NVDA) has reportedly placed an order for 300,000 units of its H20 AI chip with Taiwan Semiconductor Manufacturing Co. (TSM), aimed specifically at the Chinese market. This move follows strong demand and a partial reversal of U.S. export restrictions.

📌 Key Points

  • Order Details: Nvidia is adding to its existing inventory of 600,000–700,000 H20 chips with a new order of 300,000 units.
  • Manufacturer: The chips will be produced by TSMC and packaged by its subsidiary ASE Technology.
  • Export Regulation Update: The U.S. government recently relaxed export restrictions on H20 shipments to China, pending license approvals.
  • Product Positioning: The H20 is a reduced-performance alternative to Nvidia’s H100 and Blackwell GPUs, designed to comply with U.S. export controls.
  • Prior Sales: Nvidia sold approximately 1 million H20 chips in 2024.
  • Production Timeline: Restarting production could take up to 9 months, due to previous reallocations of capacity away from the H20 line.
  • Licensing Status: While the company expects licenses to be approved, they have not been granted yet by the U.S. Department of Commerce.

🎯 Strategic Takeaways

  • The new order signals Nvidia’s intent to reassert its presence in the Chinese AI chip market without violating U.S. trade policy.
  • H20 sales, while lower margin than flagship models, still allow Nvidia to maintain ecosystem relevance in China.
  • Market reaction has been favorable, with Nvidia stock hitting new highs as investors bet on renewed revenue streams once licensing is cleared.

This development could mark a pivotal revenue stream recovery for Nvidia in a geopolitically sensitive market. Nvidia is trading flat today at $176.48 (−0.27 / −0.15%) after gaining over 4% in the past five sessions.

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