Nvidia (NASDAQ:NVDA) has reportedly submitted an order for an additional 300,000 H20 artificial intelligence chips to Taiwan Semiconductor Manufacturing Co (TSMC) (NYSE:TSM), according to a Reuters report on Tuesday that cites unnamed sources familiar with the matter.
The surge in orders follows the Trump administration’s recent decision to lift restrictions on Nvidia’s H20 chip sales to China. The company had previously faced a sales ban in April as part of Washington’s effort to curb Beijing’s access to advanced AI semiconductors.
With the new order, Nvidia’s total inventory of H20 chips could increase from an already existing 600,000–700,000 units, the report noted. According to industry analysis firm SemiAnalysis, the company sold around 1 million of these chips in 2024.
The H20, a chip designed specifically for the Chinese market, does not offer the same processing capabilities as Nvidia’s more powerful H100 or its newer Blackwell series. Nonetheless, it remains strategically important in the ongoing global competition over AI hardware.
During a recent visit to Beijing, Nvidia CEO Jensen Huang remarked that restarting full-scale H20 production could take up to nine months.
While the U.S. has not yet issued export licenses for the chips, the report comes at a time of renewed U.S.–China talks concerning critical mineral supply chains. Meanwhile, American lawmakers continue to express concerns about the security implications of AI technologies, especially as chip shipments to China resume.
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