Nvidia Orders 300K H20 Chips from TSMC Amid China Demand

Nvidia has placed an order for 300,000 H20 AI chips with Taiwan Semiconductor Manufacturing Co (TSMC) to meet surging demand from China, according to industry sources.

This adds to an existing inventory of 600,000 to 700,000 H20 units, indicating Nvidia’s strategic bet on the Chinese market despite ongoing geopolitical tensions. The H20 chip is a scaled-down version of Nvidia’s flagship H100 GPU, created specifically for China to comply with U.S. export restrictions. In 2024 alone, Nvidia reportedly sold around 1 million H20 units, according to research firm SemiAnalysis. This move comes shortly after the U.S. reversed a ban on H20 chip sales to China that had been in effect since April 2025.

Key Highlights

• Nvidia orders 300,000 H20 chips from TSMC amid strong China demand
• H20 chips, designed for China, are lower-powered alternatives to the H100
• US lifted export ban on H20 chips in April; Nvidia awaits license approval

While Nvidia is currently awaiting export license approval from the U.S. Department of Commerce, the company remains confident that it will be granted soon. However, the decision to allow H20 sales has drawn criticism from some U.S. lawmakers, who argue it may undermine America’s leadership in AI and advanced semiconductor technology. Nvidia has defended the move, emphasizing that remaining active in China is critical to retain market share and stay ahead of competitors, particularly in the fast-growing AI hardware space.

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With this large-scale order and ongoing policy changes, Nvidia’s strategy reflects the delicate balance between innovation, regulation, and global market dynamics.