Nvidia encounters potential obstacles in restarting AI chip exports to China, despite recent approvals for H20 chip sales. Following a previous US government ban in April, TSMC had to cancel orders and adjust production lines. Although Nvidia is working on increasing H20 supply, the production restart process could extend up to nine months, leading to concerns regarding meeting the demand in China. The company has notified Chinese customers about limited chip supplies, stemming from the past ban on H20 chip sales by the US government. Manufacturing new H20 chips from scratch may require around nine months, and as of now, Nvidia has not articulated plans to recommence H20 production. However, Huang, the CEO, has expressed intentions to enhance H20 chip supply and ensure swift approvals for Chinese orders. Additionally, Huang has been advocating for restarting chip sales to China, emphasizing the importance of American chips as a global standard and warning against conceding the vast Chinese market to domestic rivals.
