NVIDIA disclosed significant yield challenges in Blackwell GPU production but confirmed production ramp scheduled for Q4 2024.

On Wednesday, Nvidia admitted that its upcoming Blackwell-based products suffer from low yields, requiring the company to re-spin some layers of the B200 processor to improve yields. "We executed a change to the Blackwell GPU mask to improve production yield," a statement by Nvidia reads. "Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal 2026. In the fourth quarter, we expect to ship several billion dollars in Blackwell revenue." Nvidia reaffirmed that it sampled Blackwell GPUs with its customers in the second quarter but acknowledged producing "low-yielding Blackwell material" to meet demand, which impacted its gross margins.

Nvidia's B100 and B200 GPUs are the first processors to use TSMC's CoWoS-L packaging, which connects chiplets using an RDL interposer with local silicon interconnect (LSI) bridges that enable a transfer rate of around 10 TB/s. An alleged mismatch in the coefficient of thermal expansion (CTE) among the GPU chiplets, LSI bridges, RDL interposer, and motherboard substrate led to warping and system failure. Nvidia had to redesign the GPU silicon's top metal layers and bumps to improve yields, though the company stated that no functional changes to Blackwell silicon were required—all changes were made solely to improve yields and ensure steady supply of B100 and B200 GPUs.

During the earnings call, Nvidia's chief executive Jensen Huang said the company has implemented all necessary changes to the design of its Blackwell B100 and B200 GPUs and is on track to mass produce them in the fourth quarter. Nvidia will ramp up production of Blackwell in Q4 2024 and will ship Blackwell GPUs worth several billion dollars in the last quarter of this year.

While it is difficult to determine the exact number of Blackwell GPUs Nvidia will ship in the fourth quarter of 2024, calculations based on rumored pricing of around $70,000 per module and Nvidia's expectation to post "several billion dollars in Blackwell revenue" in Q4 2024—indicating more than $2 billion but less than $10 billion—suggest that the company will ship a substantial number of chips in the final quarter of the year. The company has not disclosed its actual shipment volumes.