[News] NVIDIA’s H20 Production Faces Challenges? Inventory Reportedly Holds Amid Full TSMC N4 Capacity

With U.S. approval to restart H20 sales in China, buzz around NVIDIA’s inventory is ramping up. Reuters, citing The Information, reports the AI chip giant has told Chinese clients that H20 supplies are running low, while TSMC has already shifted its reserved production lines—making restocking a challenge.

According to the reports, the April U.S. ban forced NVIDIA to cancel H20 orders and release its reserved TSMC production slots. But during a visit to China last week, CEO Jensen Huang said the U.S. has promised to approve export licenses. Still, new hurdles remain—The Information notes that TSMC has already reassigned those lines, and restarting H20 production could take up to nine months.

No Signs of Upstream Reorders Observed Yet

However, supply chain sources note that current H20 stock seems enough to cover short-term demand, with no signs of upstream reorders from suppliers like TSMC. Industry insiders add that TSMC’s N4 lines remain fully booked, leaving little room for urgent orders—yet no strong uptick in demand has been seen so far. This fits with TSMC’s strong Q2 results, where 5nm orders stayed solid, making up 36% of total sales.

According to a previous report from Cailian Press, only existing H20 stock will be sold for now, with no new supplies planned. Major buyers must submit detailed BIS (Bureau of Industry and Security) license applications specifying quantities, and some are weighing risks by considering applications through IDC channels, as per Calian.

Based on recent developments and the possibility that NVIDIA will push to meet its original shipment targets, TrendForce has raised its estimate of China’s procurement ratio for foreign AI chips (mainly from NVIDIA and AMD) to 49%, up from previously projected 42%.

New China-Specific Chips on the Way

Additionally, NVIDIA is set to launch a China-tailored version of the RTX PRO 600, featuring the new Blackwell GPU architecture, with release expected in the second half of 2025.

Commercial Times, citing supply chain sources, suggests that NVIDIA plans to ship its new B30 chip in Q4. With specs similar to the H20 but 10%-20% less powerful and priced 30%-40% lower, the B30 aims to boost NVIDIA’s competitive edge in the Chinese market, the report adds.

Read more

• [News] NVIDIA’s China H20 Sales to Resume After U.S. Commitment, Samsung Poised to Gain from HBM3 Supply
• [News] NVIDIA H20 Sales Restart Sparks Buzz: Likely Inventory Sell-Off; New Blackwell GPU for China Expected

(Photo credit: NVIDIA)