Nvidia weighs boosting H200 chip output amid strong China demand

Nvidia is considering increasing production of its H200 artificial intelligence chips after orders from Chinese customers exceeded current output levels, according to sources familiar with the matter.

The review comes after U.S. President Donald Trump said the government would allow Nvidia to export its H200 processors to China, subject to a 25% fee. The H200 is Nvidia’s second-fastest AI chip and has drawn strong interest from major Chinese firms.

Sources said demand from Chinese companies has been so strong that Nvidia is leaning toward adding capacity, though discussions remain private. Nvidia said it is managing its supply chain to ensure that licensed H200 sales to China do not affect supplies to U.S. customers.

Companies including Alibaba and ByteDance have contacted Nvidia this week to discuss large purchases of the chip. However, uncertainty remains as Chinese authorities have yet to approve imports of the H200. Officials held emergency meetings on Wednesday and are expected to decide whether shipments will be permitted.

Current production of the H200 is limited, as Nvidia is prioritising its newer Blackwell chips and the upcoming Rubin line. The H200, part of Nvidia’s Hopper generation, is manufactured by TSMC using its 4-nanometre process.

Chinese buyers are seeking clarity on supply, as the H200 is the most powerful AI chip currently available to them and is significantly more advanced than the H20, a downgraded model Nvidia released for China in 2023.

China is simultaneously pushing to develop its own AI chip industry, but domestic products still lag behind Nvidia’s technology. During internal discussions, Chinese officials reportedly considered requiring H200 purchases to be paired with domestic chips to support local manufacturers.

For Nvidia, any production increase would be challenging, as it competes with other major customers for limited advanced manufacturing capacity at TSMC while transitioning to its next-generation products.