Nvidia GB200 Production Delays, Microsoft to Cut 40% Orders
Reports indicate that despite Dell's announcement of shipping its new generation GB200 NVL72 servers based on the Blackwell architecture, and confirming that Nvidia's GB200 chips are entering mass production, the project has encountered new technical obstacles. According to Taiwan's Commercial Times, the production plan for the GB200 has faced challenges, leading Microsoft to reduce its orders by 40%.
Sources in the supply chain revealed that the issue lies in the backplane connection design, specifically with the card connectors supplied by American vendor Amphenol. The testing yield has been subpar, and recent upgrades to the GB200's specifications have increased production complexity. This has resulted in a low yield rate and testing failures, creating a significant bottleneck. These challenges could lead to a delay in large-scale production until March 2025.
The Nvidia GB200 chip features TSMC's advanced CoWoS-L packaging technology and a highly complex design. However, this complexity has introduced several challenges, including chip overheating, UQD leakage issues, and currently insufficient copper wire yield rates. Although Nvidia announced the full-scale production of Blackwell during its recent earnings call, supply constraints remain an urgent issue that the company is addressing in collaboration with its partners.
To overcome these production hurdles, Nvidia is actively seeking alternative suppliers. However, challenges such as patent restrictions and delays in capacity expansion are expected to extend the resolution timeline. While the chip production plan remains unaffected, supply chain checks indicate that Microsoft has reduced its GB200 orders by 40%, reallocating part of these to the upcoming GB300 chip, which is scheduled for release in mid-2025.
In response to the production challenges and order reductions, Nvidia has committed to addressing these issues promptly and will continue working closely with its partners to find solutions.
