Nvidia's H20 AI Chip Supply Under Strain

According to a recent report by The Information, Nvidia Corporation has alerted Chinese customers about the ongoing tight supply of its H20 AI chips. The situation underscores the complexities of navigating US export controls while trying to meet the demands of one of its largest markets.

US Licenses and Production Hurdles

The chipmaker is reportedly eager to resume sales in China but first needs to secure necessary licenses from the US government. This comes after Nvidia had to cancel previous customer orders and give up manufacturing slots at Taiwan Semiconductor Manufacturing (TSMC) following a policy change in April.

Looking Ahead: A New Chip for China

With no immediate plans to restart production of the current models, Nvidia is focusing on developing a new chip designed specifically for the Chinese market. This new chip aims to comply with the latest US export restrictions, highlighting the company's efforts to adapt to the evolving regulatory landscape.