JP Morgan Chase's analysis indicates that the production capacity of the GB200 series is expected to slow down in the second half of 2024, with an annual output of up to 500,000 units, significantly below the previously forecasted 600,000 units.

The root cause of the production capacity issue is primarily due to chip design defects. Nvidia is currently undergoing engineering design changes (ECO), which will require additional time and financial resources, further delaying the product shipment timeline.

Market analysts generally expect that the high-volume production of the GB200 may be pushed back to the first quarter of 2025.

Additionally, the yield rate for interposer/LSI manufacturing based on RDL is low, with CoWoS-L achieving a yield rate of only about 60%, significantly below industry standards, further limiting production.

The JP Morgan report highlights that if GB200 production capacity cannot increase as scheduled, it may influence the purchasing decisions of ultra-large customers, consequently causing fluctuations for supply chain manufacturers.

Hon Hai, as the main foundry, may experience stock price volatility, whereas Quanta is expected to be less affected due to its diversified product line. Liquid-cooling component suppliers Shuanghong and Qihong may also face challenges if the GB200 combination's output declines in the future.