Nvidia CEO Jensen Huang arrived in Taipei Friday for talks with foundry partner TSMC. The lightning tour coincides with rising tensions surrounding sales of AI chips to China and ahead of Nvidia's figures next week. Huang said the company is talking with the U.S. government about a possible successor to the H20 chip for the Chinese market, but that permission ultimately lies with Washington.
The trip follows reports that suppliers, including Foxconn, are halting work on the H20 for the time being. In doing so, Nvidia is responding to recent Chinese warnings about alleged security risks surrounding the chip, which was precisely designed to comply with U.S. export regulations. Nvidia denies that the H20 poses a risk.
At TSMC, Huang reportedly not only said "thank you" for current production, but also ratified agreements for the next batch of Nvidia chips. According to Huang, six new designs for supercomputers have been finalized for production; they are part of Nvidia's next generation. That underscores TSMC's crucial role in Nvidia's roadmap, even as the company adjusts its supply chain to the geopolitical environment.
Meanwhile, Nvidia is working on a China-specific successor to the H20, referred to in market circles as B30A and based on the Blackwell architecture. Whether that chip can be sold depends on U.S. export criteria that limit performance and bandwidth to prevent military use.
Why this matters for investors and the industry. China remains a major market for AI infrastructure, but rules can shift from quarter to quarter. Nvidia is therefore simultaneously trying to maintain market share in China, maintain relationships with U.S. policymakers and secure production at TSMC for global demand. A temporary halt to H20 activity at suppliers and talks about a successor illustrate that triangle of priorities.
