Nvidia may boost H200 chip output amid China demand
Nvidia is considering increasing production of its H200 AI chips after Chinese orders surpassed current output, according to sources familiar with the matter.
The announcement follows U.S. President Donald Trump’s decision to allow Nvidia to export H200 chips to China, with a 25% fee applied to such sales, News.Az reports, citing Reuters.
Chinese tech giants, including Alibaba and ByteDance, have already expressed interest in placing large orders for the H200, which is the fastest AI chip in Nvidia’s previous Hopper generation and roughly six times more powerful than the China-specific H20 model.
Despite strong demand, the Chinese government has yet to approve any shipments. Emergency meetings were held this week to decide whether H200 imports would be allowed, with proposals to bundle them with domestic chips to support China’s local AI industry.
Currently, Nvidia produces limited H200 quantities as it focuses on its most advanced chips, the Blackwell and upcoming Rubin lines, manufactured by TSMC’s 4nm process. Adding capacity is challenging, as global demand and competition for TSMC production slots are high.
Investors and tech analysts note that China’s AI demand significantly exceeds local production capacity, making the H200 a crucial resource for enterprise and cloud service providers.
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