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 been called in by Chinese regulators over claims that its H20 AI chip poses security risks, putting billions in potential sales at stake.

Washington in July cleared Nvidia to resume sales of the H20 chips to China, reversing an effective April export ban. Beijing has since sought supporting documentation on potential risks, including vulnerabilities,