Nvidia Ramps Up H200 Production for 2M+ Chinese Orders

Nvidia is accelerating production of its high-performance H200 AI chips to fulfill massive orders from Chinese technology companies, following recent U.S. government approval for exports to the region. The move comes as Chinese firms have placed orders exceeding 2 million units for delivery in 2026, dwarfing Nvidia's current inventory of about 700,000 chips.

The surge in demand stems from the Trump administration's decision earlier this month to lift a prior ban on advanced AI chip exports to China, replacing it with a licensing regime that imposes a 25 percent duty on shipments. This policy reversal, enacted under President Donald Trump, enables sales of the H200 processors to authorized Chinese buyers, marking a shift from restrictions imposed during the previous administration. The H200, built on Nvidia's Hopper architecture and manufactured using Taiwan Semiconductor Manufacturing Company's 4-nanometer process, offers significant upgrades in performance for training large language models and machine learning tasks compared to earlier chips available in China.

To bridge the supply gap, Nvidia has approached TSMC to expand manufacturing capacity, with production of additional...