Latest news with #H100
Canada News.Net
2 hours ago
- Automotive
- Canada News.Net
China demand sparks fresh Nvidia H20 orders despite AI trade risks
BEIJING/SHANGHAI/NEW YORK: Nvidia has placed an order for 300,000 more H20 chips with contract manufacturer TSMC, two sources told Reuters, as strong demand from Chinese clients prompted the U.S. chipmaker to shift course and supplement its existing stockpile. One source said robust interest from Chinese firms drove the decision, just weeks after the Trump administration reversed an effective ban on the sale of H20 GPUs to China. That ban, introduced in April over national security concerns, had threatened Nvidia's foothold in the world's second-largest AI market. "It depends on the level of orders," Nvidia CEO Jensen Huang said during a recent trip to Beijing. He noted that any resumption in production would require about nine months to ramp up. The H20 chip was specifically developed to comply with U.S. export controls after restrictions were imposed in 2023 on more advanced GPUs like the H100 and Blackwell series. Though less powerful, the H20 remains compatible with Nvidia's widely used AI software tools, a key advantage in the Chinese market. Nvidia had previously indicated it would rely on its inventory of 600,000–700,000 H20 chips, but the new orders point to renewed momentum. For comparison, according to SemiAnalysis, Nvidia sold around 1 million H20 units in 2024. The Information reported after Huang's China visit was that Nvidia had limited H20 supplies and no immediate plans to resume wafer production. The recent shift suggests that it has changed, though the orders are still contingent on U.S. export licenses. Nvidia has said it expects to receive approvals soon, but the U.S. Department of Commerce has yet to grant them, according to one of the sources and a third individual familiar with the matter. In the meantime, Nvidia has asked prospective Chinese buyers to submit updated order forecasts and supporting documentation, sources said. Neither Nvidia nor TSMC commented on the orders or license status, and the U.S. Commerce Department also did not respond to requests for comment. The H20's reinstated availability comes amid broader trade negotiations between Washington and Beijing over rare earth magnets—critical components in industries ranging from EVs to defense. Still, the Biden administration's decision to allow resumed sales has sparked bipartisan criticism in Congress, where lawmakers fear it could weaken U.S. efforts to lead in AI innovation. Nvidia and industry analysts argue that continuing to serve Chinese customers is critical. Pulling back, they say, risks driving developers toward domestic alternatives such as Huawei, whose less powerful chips have gained traction in the wake of U.S. bans. Before April's restrictions, Chinese tech giants like Alibaba, ByteDance, and Tencent were already increasing orders of H20 chips, especially for running cost-efficient AI models such as DeepSeek. Even with U.S. sanctions in place, the demand for Nvidia hardware hasn't waned. Smuggling and repairs of older banned chips have surged, further underscoring Nvidia's popularity in China. The company previously warned that the April ban could force it to write off US$5.5 billion in unsold inventory and cost it $15 billion in lost sales.
Los Angeles Times
11 hours ago
- Business
- Los Angeles Times
China summons Nvidia over ‘backdoor safety risks' in H20 chips
China's cyberspace regulators on Thursday summoned Nvidia over security concerns that its H20 chips can be tracked and turned off remotely, the Cyberspace Administration of China said on its website. In the meeting, Chinese regulators demanded that the U.S. chip company provide explanations on 'backdoor safety risks' of its H20 chips to be sold in China and submit relevant materials, the office said. 'Cybersecurity is critically important to us. NVIDIA does not have 'backdoors' in our chips that would give anyone a remote way to access or control them,' an Nvidia spokesperson said in a statement to AP. It came just about two weeks after the Trump administration lifted the block on the computing chips and allowed Nvidia to resume sales of H20 chips to the Chinese market. Jensen Huang, chief executive of Nvidia, made the announcement with fanfare when he was in Beijing earlier this month. The latest episode appears to be another turbulence in the tech rivalry between the United States and China, which have left businesses in both countries tussling with governments over market access and national security concerns. Any safety concern by Beijing could jeopardize the sale of H20 chips in China. Citing unnamed U.S. AI experts, the Chinese regulators said Nvidia has developed mature technology to track, locate and remotely disable its computing chips. The regulators summoned Nvidia to 'safeguard the cybersecurity and data security of Chinese users,' in accordance with Chinese laws, the statement said. The statement also referred to a call by U.S. lawmakers to require tracking and locating capabilities on U.S. advanced chips sold overseas. In May, Rep. Bill Huizenga, R.-Michigan, and Rep. Bill Foster, D.-Illinois, introduced the Chip Security Act that would require high-end chips to be equipped with 'security mechanisms' to detect 'smuggling or exploitation.' The bill has not moved through Congress since its introduction. Foster, a trained physicist, then said, 'I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands.' The U.S. still bans the sale to China of the most advanced chips, which are necessary for developing artificial intelligence. Both countries aim to lead in the artificial intelligence race. The Trump administration in April blocked the sales of H20 chips, which Nvidia developed to specifically comply with U.S. restrictions for exports of AI chips to China. After the ban was lifted, Nvidia expected to sell hundreds of thousands more H20 chips in the Chinese market. But the easing of the ban has raised eyebrows on Capitol Hill. On Monday, a group of top Democratic senators, including Minority Leader Sen. Chuck Schumer, wrote to Commerce Secretary Howard Lutnick to express their 'grave concerns'. While chips like the H20 have differing capabilities than the most advanced chips such as Nvidia's H100, 'they give (China) capabilities that its domestically-developed chipsets cannot,' the senators wrote. Shortly after the ban was lifted, Rep. John Moolenaar, R.-Michigan, who chairs the House Select Committee on China, objected. 'The Commerce Department made the right call in banning the H20. Now it must hold the line,' Moolenaar wrote in a letter to Lutnick. 'We can't let the CCP use American chips to train AI models that will power its military, censor its people, and undercut American innovation,' Moolenaar wrote, referring to the Chinese Communist Party by its acronym. Tang writes for the Associated Press.
Business Insider
2 days ago
- Business
- Business Insider
Nvidia Orders 300K H20 Chips from TSMC as China Demand Heats Up
Nvidia (NVDA) has reportedly placed an order for 300,000 H20 AI chips from TSMC (TSM), signaling rising demand from China. The sizable order highlights Nvidia's efforts to meet growing AI infrastructure needs in China and maintain its dominance in the global chip race. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Nvidia Bets on China Boom According to sources familiar with the matter, the new TSMC order adds to an existing inventory of 600,000 to 700,000 chips. The strong demand from China has prompted Nvidia to reconsider its initial plan to rely solely on its existing stockpile. Notably, Nvidia had designed the H20 chip specifically for China after U.S. export restrictions limited access to its more advanced AI chips. While less powerful than the H100 or the latest Blackwell series, the H20 complies with U.S. trade rules. Earlier this month, the Trump administration reversed an April ban and allowed Nvidia to resume sales of its H20 GPUs to China. However, the company is facing supply constraints due to surging demand and has reportedly informed Chinese customers that its H20 chip supply is limited. Nvidia has also requested that Chinese companies interested in buying H20 chips provide updated documentation, including client order volume forecasts. Meanwhile, CEO Jensen Huang stated during a recent trip to Beijing that future H20 production depends on order volume, and any restart of the supply chain would take around nine months. Is Nvidia a Buy or Sell Stock? According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 34 Buys, three Holds, and one Sell assigned in the last three months. At $184.91, the Nvidia average stock price target implies a 5% upside potential.
Time of India
3 days ago
- Automotive
- Time of India
Nvidia orders 300,000 H20 chips from TSMC due to robust China demand
Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the US firm to change its mind about just relying on its existing stockpile. The Trump administration this month allowed Nvidia to resume sales of H20 graphics processing units (GPUs) to China, reversing an effective ban imposed in April designed to keep advanced AI chips out of Chinese hands due to national security concerns. Nvidia developed the H20 specifically for the Chinese market after US export restrictions on its other AI chipsets were imposed in late 2023. The H20 does not have as much computing power as Nvidia's H100 or its new Blackwell series sold in markets outside China. The new orders with Taiwan's TMSC would add to existing inventory of 600,000 to 700,000 H20 chips, according to the sources who were not authorised to speak to media and declined to be identified. For comparison purposes, Nvidia sold around 1 million H20 chips in 2024, according to US research firm SemiAnalysis. Nvidia CEO Jensen Huang said during a trip to Beijing this month that the level of H20 orders it received would determine whether production would begin again, adding that any restart to the supply chain would take nine months. The Information reported after Huang's trip that Nvidia had told customers it had limited H20 stocks available and it had no immediate plans to restart wafer production for the GPU. Nvidia needs to obtain export licenses from the US government to ship the H20 chips. It said in mid-July it had been assured by authorities that it would get them soon. The US Department of Commerce has yet to approve those licenses, one of the sources and a third source said. Nvidia on Monday declined to comment on the new orders or the status of its license applications. TSMC declined to comment. The US Commerce Department did not immediately respond to a request for comment. Nvidia has asked Chinese companies interested in purchasing Nvidia H20 chips to submit new documentation including order volume forecasts from clients, said one of the sources and a fourth source. Key product in US-Sino trade war The Trump administration said the resumption of H20 sales was part of negotiations with China over rare earth magnets - elements essential for many industries and which Beijing had limited exports of as trade war tensions escalated. The decision drew bipartisan condemnation from US legislators who are worried that giving China access to the H20 will impede US efforts to maintain its lead in AI technology. But Nvidia and others argue that it is important to retain Chinese interest in its chips - which work with Nvidia's software tools - so that developers do not completely switch over to offerings from rivals like Huawei. Before the April ban, Chinese technology giants including Tencent, ByteDance and Alibaba substantially increased H20 orders as they deployed DeepSeek's cost-effective AI models as well as their own models. The popularity of Nvidia products in China, despite the advent of rival, albeit less powerful, offerings from Huawei, has been underscored by a boom in repair demand for its other banned GPUS - many of which have been smuggled into the country. After the April ban on H20 sales, Nvidia warned that it would have to write off $5.5 billion in inventories, while Huang told the Stratechery podcast that the company also had to forgo $15 billion in potential sales.
Yahoo
3 days ago
- Business
- Yahoo
Nvidia Doubles Down With Massive H20 Order
Nvidia (NASDAQ:NVDA) just placed a fresh order for 300,000 H20 AI GPUs from TSMC (TSM) to keep pace with booming China demand. That order adds to an existing 600,000700,000 H20 chip stockpile and pushes China?bound inventory close to 1 million follows April's U.S. lift on H20 exports under the Trump administration, even though formal export licenses from the Commerce Department are still awaiting approval. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The H20 was built specifically for China with pared?down compute versus Nvidia's H100 and Blackwell lines to comply with 2023 restrictions, and now it's become a linchpin in Nvidia's China play. Analysts say the order underscores Nvidia's pricing power and volume leverage in AI's hottest market. With lead times of nine months to restart H20 production, Jensen Huang has doubled down on TSMC capacity to head off domestic Chinese rivals and blunt any hiccups from export rule changes. Nvidia shares popped on the news as investors bet on strong Chinese uptake to drive another leg of growth. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
