Key points
- Nvidia CEO Jensen Huang visited TSMC in Taipei, discussing new chip designs.
- The visit follows US restrictions on high-performance chip sales to China.
- Nvidia has asked some suppliers to halt production of the H20 chip.
- Huang stated that Nvidia is in talks with the US government regarding future chip sales to China.
Nvidia CEO Jensen Huang’s whirlwind trip to Taiwan included a key meeting with TSMC, Nvidia’s primary chip manufacturing partner. The visit, just days before Nvidia’s crucial earnings announcement, comes at a critical juncture in the ongoing US-China technological standoff.
Huang’s trip focused on the successful “tape-out” of six new chips, including a groundbreaking GPU and a silicon photonics processor, marking a significant leap forward for Nvidia’s next-generation Rubin architecture. This new architecture represents a complete overhaul, with every component being redesigned and improved.
The timing of Huang’s visit is particularly significant given the recent restrictions imposed by the US government on the export of advanced AI chips to China. These restrictions initially led to a halt in sales of Nvidia’s H20 chip, designed specifically for the Chinese market.
Although permission to resume sales was granted in July, Nvidia subsequently faced allegations from Chinese authorities regarding potential security risks associated with the H20.
In response to these concerns, and to manage inventory, Nvidia has reportedly asked several suppliers, including Foxconn, Amkor Technology, and Samsung Electronics, to pause production of the H20 chip temporarily.
Huang addressed these issues directly, emphasizing that Nvidia is actively engaging in discussions with the US government about supplying China with a successor to the H20 chip. He stressed that the decision ultimately rests with the US government and that the current situation is still unfolding.
Despite the complexities of the geopolitical landscape, Huang expressed gratitude to TSMC for its partnership and reiterated Nvidia’s position that the H20 chip poses no national security risks. He also emphasized the company’s commitment to managing its supply chain effectively to adapt to fluctuating market demands.
Nvidia maintains a strong stance that the H20 chip is not intended for military applications or government infrastructure. The company is working to navigate the complex regulatory environment while continuing to innovate and deliver cutting-edge technology.
The continued success of Nvidia’s efforts will depend heavily on the evolving relationship between the US and China and the future trajectory of chip regulations.
