Nvidia’s China strategy is shifting once again. According to Reuters, the company has placed a fresh order for 300,000 H20 AI GPUs with TSMC, spurred by unexpectedly strong demand from Chinese tech giants. This move comes just weeks after the Trump administration reversed an April ban on the H20, a China-specific chip designed to comply with U.S. export controls but still powerful enough to dominate AI inference workloads.
The decision marks a reversal of Nvidia’s earlier stance. CEO Jensen Huang, during a recent visit to Beijing, had hinted that H20 production would remain paused unless customer demand justified a restart—something that would take nine months to spin up. But with existing stockpiles of 600,000–700,000 H20 units quickly dwindling, and reports of smuggling and a booming repair market for banned GPUs, Nvidia is clearly seeing enough momentum to justify new orders.
