In China, the business of repairing NVIDIA’s high-end AI chips is booming, with repair shops extending the lifecycle of these critical components. As demand surges, more than a dozen firms are cashing in by offering extensive repair services for chips like the H100 and A100.
China has long been a major player in the AI chip market, utilizing advanced components from around the world. With these chips being in use for several years, the need for maintenance and repairs has skyrocketed. Reports suggest that some firms handle repairs for over 500 chips per month, illustrating the substantial flow of these components despite US export restrictions.
With NVIDIA no longer providing support for GPUs to Chinese customers, local repair shops have stepped in to fill the gap, seeing a significant opportunity. Many chips in use have been operational for more than three years, making repair a more appealing option than purchasing new ones from NVIDIA or other providers.
Repair costs can reach up to $2,800 per chip, covering services such as software testing, fan repair, PCB fixing, and parts replacement. While the origins of the needed components remain somewhat mysterious, it’s clear that an organized supply chain supports this booming industry. By extending the life of these AI chips, China continues to maintain access to crucial technology while benefiting from the financial advantages of repair over replacement.
