Nvidia ordered 300K H20 chips from Taiwan Semiconductor last week – report

Nvidia (NASDAQ:NVDA) placed a fresh order for 300,000 H20 AI chips with Taiwan Semiconductor Manufacturing (NYSE:TSM) last week to meet rising demand from China, Reuters reported, citing two unnamed sources.

The new batch adds to an existing inventory of 600,000–700,000 chips, the sources said, adding that orders represent a switch from the original plan to just draw from the existing stockpile.

Earlier this month, the Trump administration cleared Nvidia (NASDAQ:NVDA) to resume sales of its H20 graphics processing units to China, effectively lifting a ban imposed in April aimed at curbing Beijing’s access to advanced AI technology.

Nvidia (NVDA) requires export licenses from the U.S. government to ship its those chipsets. The company said in mid-July it had received assurances from officials that approvals were forthcoming. However, according to two sources, the U.S. Department of Commerce is yet to approve those licenses.

The H20 chip was designed specifically for the Chinese market after the U.S. imposed export restrictions on its more advanced AI processors in late 2023. Compared to the company’s high-end H100 and the newer Blackwell series available globally, the H20 offers reduced computing power to comply with U.S. trade rules.