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Nvidia may begin mass production of new AI chips for China in Q2 2024



Nvidia AI chips China 2024

Nvidia is shifting its focus on the mass production of new AI chips for China and we may see the process in action by the second quarter of 2024. The firm is constantly putting efforts into building such processors that can make their way to China and at the same time, follow the U.S. trade rules.

Perhaps, Nvidia could continue the development of its powerful H20 AI chips for China and officially introduce it in Q2 2024. The processor was hearsay to show up in October last year. However, issues with server manufacturers led to the progress in delay.

As of now, the information reveals that the initial production volume of these chips will be limited and the company will focus on completing chip orders for its major customers in China.

Consequently, Nvidia has three chips to unveil in China amid US restrictions. These are H20, L20, and L2. None of these have been announced yet. The company believes that these inventions will help retain its market share in the region.

It is worth mentioning that all three processors contain the latest AI features with effective computing power to twin with U.S. trade regulations. The chip maker also introduced a new gaming chip for China that complies with new rules.

Nvidia AI chips China 2024

Huawei is the new focal point!

While Nvidia plans some effective changes to enhance its business growth in China, some Chinese firms are reportedly pushing back and don’t want to invest in downgraded Nvidia chips. Eventually, these native companies are turning to Huawei and other Chinese brands in favor of U.S. sanctions.

One such example is the Baidu company, which placed an order for around 1600 Huawei Ascend 901B AI chipsets to exit Nvidia. Probably, Huawei offers better value and quality over those products that the US limitations are allowing Nvidia to sell in the Chinese market.

It would be worth seeing if Nvidia will be able to achieve new milestones in this segment or Huawei will continue to remain a focal point for Chinese firms in terms of AI chip suppliers.


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