The U.S. chipmaker has redirected manufacturing capacity at Taiwan Semiconductor Manufacturing Company (TSMC) toward its next-generation AI hardware, News.Az reports, citing Reuters.
Sources familiar with the matter said Nvidia has shifted resources previously used to manufacture H200 chips toward its upcoming Vera Rubin hardware platform.
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The decision signals a strategic shift as export controls imposed by the United States limit the types of advanced chips that American companies can sell to China.
These restrictions have significantly constrained Nvidia’s ability to supply high-performance AI chips to Chinese customers, a market that once represented a major source of revenue for the company.
Washington has tightened semiconductor export rules over the past few years in an effort to curb China’s access to advanced computing technology that could support military or surveillance capabilities.
As a result, chipmakers like Nvidia have had to redesign products or limit shipments to comply with the regulations.
By reallocating production capacity to next-generation hardware, Nvidia appears to be focusing on markets where demand for advanced AI processors remains strong and regulatory barriers are lower.
Industry analysts say the move highlights how geopolitical tensions are increasingly reshaping global semiconductor supply chains and technology competition between the United States and China.
