NVIDIA H20 returns to the market, but Chinese chips have been in short supply for the past three months.

Multiple domestic chip industry insiders have stated that in the first half of this year, several mainstream chip manufacturers in China have had all of their production capacity booked, with both Kunlun and Cambricon experiencing overwhelming demand. Domestic GPU manufacturers are taking advantage of the past three months of low activity to aggressively target the H20 market. The founder of a domestic chip manufacturer stated that in order to compete with NVIDIA, everyone is focusing on several key product directions: for example, emphasizing that inference chips can better adapt to models; increasing the memory of inference cards to reduce communication pressure and accommodate larger models; improving data transfer speed to reduce dependence on memory; and highlighting the better energy efficiency ratio of inference chips compared to H20. "H20 can easily be replaced by many alternatives in China, as most domestic chips are targeting H20 in terms of specifications and price. This is currently the main competitor for domestic chips in China," analyzed an industry expert.