[News] NVIDIA’s Reported 300K H20 Order Signals China CSP Boom, Boosts Taiwan AI Server Makers

As reported by Reuters, citing sources, NVIDIA recently placed a 300,000-unit order for H20 with TSMC, reversing its earlier plan to rely solely on existing inventory due to strong demand from China. Economic Daily News highlights that this substantial order reflects continued robust demand from Chinese cloud service providers (CSPs), which is likely to boost AI server outsourcing orders for Taiwan’s partners such as Foxconn Industrial Internet (FII) and Inventec.

Ahead of the Trump administration’s export restrictions implemented in April, major Chinese tech giants—including Tencent, ByteDance, and Alibaba—reportedly stockpiled large quantities of H20 chips. However, according to institutional investors cited by Economic Daily News, NVIDIA’s recent large-scale order signals continued strong demand from major Chinese CSPs, which is expected to further drive AI server outsourcing orders.

Notably, Alibaba Cloud—China’s leading CSP with a 23% share of the domestic AI IaaS market last year—recently launched its most powerful AI programming model, Qwen3-Coder, which is expected to further boost demand for AI server deployment,as Economic Daily News notes.

FII and Inventec See Strong Momentum from China’s AI Demand

As Economic Daily News points out, FII has seen significant gains from the AI boom. In Q2, its cloud computing revenue rose over 50% year-over-year, driven by growing demand for hyperscale AI cabinets. AI server revenue jumped more than 60%, while CSP server revenue surged over 1.5 times compared to a year earlier, highlighting strong momentum from Chinese AI clients.

Inventec, meanwhile, has secured a place in the AI server supply chain for China’s four major CSPs: Baidu, Alibaba, Tencent, and ByteDance. With the easing of H20 export restrictions, Economic Daily News suggests NVIDIA’s follow-up orders will likely reinforce AI server demand from Inventec’s Chinese customers.

Meanwhile, as Reuters notes, Huawei recently unveiled its CloudMatrix 384 server, which incorporates 384 of the company’s latest Ascend 910C chips and reportedly outperforms NVIDIA’s GB200 NVL72 in certain benchmarks. However, Commercial Times notes that in terms of performance, NVIDIA’s H20 chip is approximately three times more powerful than the 910C. As a result, Chinese cloud service providers are expected to maintain certain demand for the H20, the report indicates.

Read more

• [News] NVIDIA Reportedly Adds 300K H20 Orders on China Demand Surge — TSMC, Memory Makers in Focus
• [News] NVIDIA’s H20 Production Faces Challenges? Inventory Reportedly Holds Amid Full TSMC N4 Capacity

(Photo credit: Foxconn)