Overview

• Despite a recent US-China agreement to resume H20 shipments, Nvidia faces bottlenecks that limit fresh supplies.
• Nvidia has informed its Chinese customers that current H20 inventories are insufficient to meet prebooked orders.
• TSMC production lines originally reserved for H20 chips were scrapped and repurposed for other Nvidia products.
• Chief Executive Jensen Huang warned that building new H20 processors from the ground up could take about nine months.
• As the most advanced AI chip allowed under US export controls, H20 scarcity poses a major hurdle for Nvidia’s China market strategy.