NVIDIA (NVDA) Faces Supply Crunch in China

by MarketNewsData

Limited production and paused exports disrupt deliveries to key Chinese tech firms

NVIDIA is experiencing setbacks in supplying its H20 AI chip to China, with both licensing and manufacturing delays holding up shipments. The H20, designed to comply with U.S. export regulations, is central to demand from Chinese firms like Alibaba and Tencent.

🔹 Latest developments:

  • NVIDIA has alerted Chinese customers to limited supply of the H20.

  • Although it began the process to resume exports, licenses have not yet been issued, and production capacity is still ramping up after earlier cancellations.

  • A full production reset could take up to nine months, per industry sources.

🔹 Market implications:

  • The H20 was expected to drive significant sales in China’s AI market.

  • Delays open the door for rivals like AMD and Huawei to gain share in the region.

  • NVIDIA’s broader AI business remains strong, but short-term revenue from China could be affected.

📌 Bottom line:
NVIDIA’s H20 rollout in China is off to a slow start, with supply constraints and logistics setbacks likely to delay meaningful impact this quarter.

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