Alibaba, Tencent, ByteDance and other Chinese AI and cloud computing companies have ordered a combined 6 million RTX Pro 5500 chips from Nvidia, but will receive only about 1% of that volume over the next four months, according to a Bloomberg report citing people familiar with the matter, as relayed by Lianhe Zaobao. Separately, Reuters reported, citing people familiar with the matter, that the US Commerce Department has not approved SK Hynix's license to ship US semiconductor manufacturing equipment to its Dalian plant in China, and the delay has stalled a New York state factory plan by its US subsidiary Solidigm.

Large Chinese orders face severe delivery lag

The Chinese companies ordered a combined 6 million RTX Pro 5500 chips, the report said, involving major AI and cloud computing players including Alibaba, Tencent and ByteDance. According to the people familiar with the matter, only about 1% of that volume will be delivered over the next four months, meaning the vast majority of the orders will not arrive in the near term.

The RTX Pro 5500 is an Nvidia chip aimed at professional visualization and computing workloads. The report did not disclose the order value, signing dates or delivery arrangements, and Nvidia has not publicly responded to the report.

SK Hynix New York factory plan hit by license delay

The US Commerce Department has not approved SK Hynix's license to ship US semiconductor manufacturing equipment to its Dalian plant in China, Reuters reported. The people familiar with the matter said the delay has affected a plan by its US subsidiary Solidigm to build a factory in New York state.

The report did not specify when the license application was filed, what equipment it covers, or the location and investment size of the New York plant. Neither the US Commerce Department nor SK Hynix has publicly commented on the report.

Supply chain bottlenecks compound with export controls

The two reports point to different links in the AI computing supply chain: Chinese cloud and AI companies face delivery bottlenecks on large-scale chip purchases, while a memory chipmaker's cross-border capacity plans are constrained by the pace of US export license approvals. Taken together, they reflect the tension in the AI computing supply chain between surging demand and control measures.

Both the Bloomberg and Reuters reports are based on accounts from people familiar with the matter, and the figures and developments have not been officially confirmed by the companies or regulators.

What to watch

  • Nvidia's response on the delivery schedule and the claim of a 1% delivery rate;
  • Whether Alibaba, Tencent, ByteDance and others adjust their purchasing or seek alternatives;
  • Progress on the US Commerce Department's review of SK Hynix's equipment license, and whether Solidigm's New York factory plan changes;
  • Further impact of export controls and license approval pace on the AI computing supply chain.