Why Nvidia’s AI chip plans for China may not go as planned

Nvidia may have been hit with a ‘new’ problem with resuming export of its AI chips to China. The US-based company, which was recently given a go-ahead to restart the sales of H20 AI chips to the region, has reportedly informed its Chinese customers of limited supplies for the chips. H20 is the most powerful AI processor the semiconductor company has been permitted to sell to the country under US export restrictions.

According to a report by The Information, the supply constraints stem from an April US government ban on H20 chip sales. Citing two sources, the report claims that this ban compelled Nvidia to void existing customer orders and cancel manufacturing capacity previously booked with chipmaker Taiwan Semiconductor Manufacturing (TSMC).