Nvidia is facing significant challenges in its return to the Chinese market, with supply chain issues hindering chip sales. The company had announced plans to resume shipments of its high-performance H20 AI chips but has now warned customers that supplies are limited due to surge in demand from major tech companies like ByteDance and Alibaba.
The situation has sparked fears of a policy reversal by the Trump administration, leading to concerns over the US-China chip trade. In response to increased orders, Nvidia has canceled its chip production plans with Taiwan Semiconductor Manufacturing Company (TSMC) and is now relying on existing stock until it runs out.
John Moolenaar, a Republican representative, has also raised concerns about Nvidia’s decision to resume H20 chip sales to China, citing the potential risks of boosting China’s tech power and undermining US efforts to limit advanced chip access for national security.
Source: https://www.tipranks.com/news/nvidias-nvda-china-comeback-hits-supply-and-political-snags