[News] China’s Major Server Maker Reportedly Warns of NVIDIA’s H20 Shortage, with Uncertainty Ahead of April

While China’s new energy-efficiency rules may raise concerns for NVIDIA, a latest Reuters report suggests that according to H3C, one of China’s biggest server makers, the H20 chip is in high demand and hard to find.

Reuters, citing a notice from H3C, notes that H20’s international supply chain is facing major uncertainties, and its current inventory is almost gone. The company expects new shipments by mid-April, the report adds.

However, H3C reportedly warns that supply plans beyond April 20 are uncertain due to raw material policy changes, shipping disruptions, and production challenges.

H3C, along with Inspur, Lenovo, and Huawei’s xFusion, is a key OEM partner for NVIDIA’s AI chips in China, Reuters suggests. Meanwhile, China’s Huawei and Cambricon offer domestic alternatives to the H20, the report says.

NVIDIA’s outlook for the Chinese market has been facing multiple challenges. The latest one, according to Financial Times, would be the potential introduction of new energy-efficiency guidelines by China’s National Development and Reform Commission (NDRC), which urge companies to use compliant chips when building or expanding data centers.

If these new regulations are strictly enforced, Chinese firms would be barred from purchasing NVIDIA’s H20 chip, the Financial Times report notes.

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(Photo credit: NVIDIA)