Initial Setbacks in Blackwell-Based Product Development
During its Q2 2024 earnings call, Nvidia confirmed that its upcoming Blackwell-based products are facing low-yield challenges. These issues have affected the production of its B100 and B200 processors. Despite these setbacks, Nvidia remains optimistic about its production timeline and has undertaken significant measures to address these challenges.
Design Changes and Optimistic Outlook
To improve production yields, Nvidia announced it executed a change to the Blackwell GPU mask. This new design aims to enhance the production yields of B100 and B200 processors. Speaking on the earnings call, Nvidia’s CEO Jensen Huang reassured investors that the supply of B100 and B200 GPUs will be secure. He expressed confidence in the company’s ability to mass-produce these chips starting in the fourth quarter of 2024, projecting several billion dollars in shipments by year-end.
Technical Challenges and Innovative Solutions
The Blackwell B100 and B200 GPUs utilize TSMC’s CoWoS-L packaging technology and a complex design, which initially led to yield issues. Reports indicated that the challenges stemmed from mismatched thermal expansion coefficients among various components, causing warping and system failures. However, Nvidia has addressed these issues by implementing a new GPU photomask, which has successfully normalized the production yields.
Looking Ahead
Nvidia is poised to ramp up production of its Blackwell GPUs in Q4 2024, despite the earlier production setbacks. The successful sampling of Blackwell GPUs with customers during the second quarter underscores the company’s commitment to overcoming technical hurdles and meeting demand. As the tech giant navigates these challenges, it continues to show its resilience and capacity for innovation in the semiconductor industry.
