Not just selling inventory! Reports indicate that NVIDIA has placed a new order for 300,000 H20 units with TSMC

Strong demand for H20 chips has led NVIDIA to change its previous strategy of relying solely on existing inventory and instead increase new production orders.

On Tuesday, media reports citing informed sources stated that NVIDIA has officially placed a new order for 300,000 H20 chips with TSMC to supplement the existing inventory of 600,000 to 700,000 H20 chips. This decision clearly indicates that the company is not just digesting existing inventory but is restarting the production line for AI chips customized for the market.

This decision refutes earlier reports. As mentioned in a previous article, some media outlets reported that NVIDIA had informed customers that the inventory of H20 AI chips was limited and that there were currently no plans to restart production. Therefore, at that time, some speculated that NVIDIA would only fulfill orders supported by existing inventory.

Analysts believe that this increase in orders indicates NVIDIA's optimism about the future GPU market prospects, providing positive support for the company's long-term performance growth. According to data from U.S. research firm SemiAnalysis, NVIDIA has sold approximately 1 million H20 chips in 2024, and the new orders will further consolidate its market position.

Strong Demand for H20 Chips, NVIDIA Restarts Production

According to CCTV News, Jensen Huang stated earlier this month that the U.S. government has approved export licenses, and sales of H20 chips to the Chinese market will begin.

Regarding how to meet market demand, Huang emphasized that the level of H20 orders will determine whether production is restarted, adding that restarting the supply chain will take nine months. The new orders clearly indicate that market demand has reached a level sufficient to support the restart of production.

One of the sources cited by the media specifically pointed out that strong market demand has led the American company to change its idea of relying solely on existing inventory.

In addition, several sources revealed that NVIDIA has requested potential customers for H20 chips to submit new documentation, including forecasts of their order volumes. This indicates that NVIDIA is preparing for potential large-scale production.

Although NVIDIA has increased orders, the company still needs to obtain export licenses from the U.S. government to ship the products. According to sources reported by Reuters, the U.S. Department of Commerce has not yet approved these licenses. However, NVIDIA stated in mid-July that it had been assured by U.S. authorities that it would soon obtain these licenses