Nvidia(US:NVDA) 国芯网·2025-07-29 12:38Core Viewpoint - The article highlights the strong demand for NVIDIA's H20 chips in the Chinese market, prompting the company to reconsider its production strategy and place urgent orders with TSMC to meet this demand [2][3]. Group 1: Market Demand and Strategy - NVIDIA had to change its strategy from relying solely on existing inventory to ordering 300,000 H20 chips from TSMC due to unexpectedly strong demand in China [2]. - Research firm SemiAnalysis reported that NVIDIA sold approximately 1 million H20 chips in 2024, indicating a significant market interest [2]. - The demand surge has led NVIDIA to contemplate restarting production, moving beyond just selling existing stock [2]. Group 2: Competitive Landscape - Despite the availability of alternative products from Huawei, NVIDIA remains popular in China, largely due to its CUDA ecosystem, which is difficult to replace [2]. - Chinese tech giants like Tencent, ByteDance, and Alibaba significantly increased their orders for H20 chips prior to the implementation of the export ban in April [2]. Group 3: Production and Financial Impact - NVIDIA's CEO Jensen Huang stated that the volume of H20 orders will determine whether production will restart, noting that supply chain reactivation would take about nine months [3]. - Following the April export ban, NVIDIA warned of a $5.5 billion inventory write-down and reported a loss of $15 billion in potential sales [3].