Taiwan s domestic products can be exhausted and difficult to restart H20 chips. Foreign media see NVIDIA s next way out in the Chinese market

NVIDIA executive chief Huang Renjun said last week that the Trump administration expects to release H20 chips to sell to China. Although the export ban is lifted, market news has been released that NVIDIA and supply chain partners may not restart H20 production, turning to a focus on renewal plans.

Market news pointed out that due to the previous export controls taking effect, many cooperative manufacturers have long turned their production lines to other products. Now NVIDIA and suppliers are facing production difficulties. For example, large-scale wafer foundry manufacturers such as Telco have maintained a retention level of the wafer production required to restart H20 chips because there is a huge demand for other process stages.

Even if the H20 chip is re-prepared for the production line, it will take time to enter the market, which means that NVIDIA cannot grasp current demand immediately. According to expectations of multiple investment institutions, NVIDIA currently ships millions of H20 chips, most of which come from existing inventory.

So in this way, NVIDIA may be the first to clear H20 inventory in the early stage to reduce the losses of the previous quarter, and then turn to the local market of China to develop a new plan. According to recent reports from foreign media, NVIDIA expects to adopt a diversified solution to the Chinese market, including B20, RTX PRO 6000D and B30 chips, each of which locks in different application areas in the market.

In this way, suppliers can open new lines for new products instead of just relying on H20 chips, and NVIDIA can also try to transform breakthroughs. But no matter what, NVIDIA's business in China will still face uncertainty, especially whether H20 can be successfully restarted.

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