Industry: Production bottlenecks slow Nvidia's deliveries to China

Nvidia's announced resumption of deliveries of special AI chips to China is encountering difficulties, according to a media report. The US company has informed its Chinese customers that its supplies of H2O chips are limited, tech publication The Information reported on Saturday, citing two people familiar with the matter. The originally booked production lines at chipmaker TSMC have since been canceled and converted to other products. Manufacturing new chips from scratch could take nine months, the paper quoted Nvidia CEO Jensen Huang as saying.

Nvidia declined to comment. The H20 is the most powerful artificial intelligence (AI) processor that the US company is permitted to sell to the People's Republic. The US government wants to cut off China's access to the most powerful chips in the race for AI dominance. In April, it initially banned the export of the H20, which was actually developed specifically for the Chinese market. On Monday, Nvidia announced the resumption of exports after the US government reached an agreement with China. Huang stated on Wednesday that H20 deliveries would be ramped up in the coming months.