Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile.

NVIDIA has ordered 300,000 more H20 AI GPUs from TSMC just weeks after the ban on selling to China was reversed. That's great news for NVIDIA, but some national security experts are sounding the alarm.

Nvidia currently has inventory of between 600,000 to 700,000 H20 chips, according to the sources quoted by Reuters, but the additional order with TSMC will put the company in a stronger position to meet anticipated demand. In 2024 around 1 million H20 chips were sold to China.