Nvidia faces potential sales growth in China, yet faces potential risk in Taiwan
In a significant development, Nvidia Corporation, a key player in the semiconductor sector often referred to as the sector's queen, has announced that it will resume exports of its Hopper 20 (H20) GPUs to Beijing. The US government has given assurance that export licenses will be granted, marking a recent turn of events in the world of technology[1].
Despite this positive development, production and supply remain constrained due to cancellations of H20 shipments and the release of manufacturing slots at TSMC amid the previous export restrictions. The process of restarting production capacity could take 6 to 9 months, given TSMC’s full N4 line capacity[3]. However, to meet growing Chinese demand, Nvidia has placed a fresh order for 300,000 H20 GPUs with TSMC, indicating optimistic momentum in sales and restocking efforts[2].
Nvidia’s CEO, Jensen Huang, has visited Beijing multiple times this year to strengthen ties and promote AI growth opportunities aligned with the resumption of chip sales[1]. In addition, Nvidia is planning to release new compliant AI GPUs for China, like the RTX PRO series, tailored for smart factory and logistics AI applications[1][3].
The discussion or negotiation, referred to as "Cards on the table," in this article includes the Taiwan issue, the balance and numbers in technology, and the dominance of China in the semiconductor industry, with Nvidia Corp being a significant part of this discussion. The article aims to discuss balances and numbers in the context of the topics being discussed[4].
In summary, while Nvidia has obtained U.S. government assurances and has restarted shipments of H20 GPUs to Beijing, actual production ramp-up is ongoing and challenged by fab capacity constraints, but new orders and product launches reflect strong demand and a strategic commitment to the China market[1][2][3].
[1] Reuters
[2] Bloomberg
[3] TechCrunch
[4] The Diplomat
- The resumption of Nvidia's H20 GPU exports to Beijing and the recent assurances from the US government indicate a surge in the company's financing for business expansion in the Chinese market, specifically technology-related sectors.
- In an effort to capitalize on the growing demand in China, Nvidia has placed a substantial order for 300,000 H20 GPUs with TSMC and is even planning to launch new AI GPUs like the RTX PRO series, further exhibiting the company's commitment to the Chinese market and technology industry.
