NVIDIA appears to be putting the brakes on its China-specific H20 AI chip production, despite the U.S.
government softening export restrictions. A new report from The Information reveals that production lines once dedicated to the H20-tailored for compliance with U.S. rules-have now been reassigned to more advanced GPU models.
The H20, part of NVIDIA’s Hopper architecture, was meant to cater to the Chinese market without breaching export laws. But while technically cleared for sale, it’s significantly behind the latest Blackwell-based GPUs in terms of performance and demand. As a result, production priorities shifted, leaving H20 chips-both finished and in wafer form-stockpiled but potentially unused.
When CEO Jensen Huang visited China last year, expectations rose that H20 shipments might pick up. However, Huang acknowledged limitations, noting, “It’s probably not 100%, but it’s not 0% either,” when asked about matching demand with existing inventory.
Now, production lines formerly run by TSMC for the H20 have been repurposed, and there’s no sign NVIDIA plans to restart them. The company had reportedly been working on an H20 upgrade, but that effort may have also been shelved. Industry chatter suggests that a new China-friendly version of the Blackwell chip might be on the horizon instead, though this would again hinge on U.S. approval.
Adding to NVIDIA’s dilemma, memory supplier SK hynix is reportedly struggling to meet demand for high-end chips required for any future H20 batches. This creates another bottleneck should NVIDIA try to revive the GPU for China.
For now, as NVIDIA enters its pre-earnings quiet period, it won’t comment publicly on these developments. Investors, however, will be closely watching to see how China’s AI demand-or the lack thereof-affects the chip giant’s bottom line in its next financial report.