Demand for Nvidia’s H200 AI Chip Surges in China – Company Considers Increasing Production

US chipmaker Nvidia is considering increasing production of its H200 artificial intelligence (AI) chips as demand from Chinese companies exceeds current output capacity. According to a Reuters report, an Nvidia spokesperson said, “We are managing our supply chain to ensure that supplying H200s to licensed customers in China does not impact our ability to supply customers in the US.”

Sources indicate that Chinese companies, including e-commerce giant Alibaba and TikTok owner ByteDance, contacted Nvidia this week with large orders. This comes after US President Donald Trump authorized Nvidia on December 9th to export its second-fastest H200 processors to China, subject to a 25% sales tax.

Chinese Government Has Not Yet Approved H200 Purchases

However, the Chinese government has not yet approved the purchase of the H200. According to Reuters sources, Chinese officials held an emergency meeting on the issue on December 10th. Currently, only a limited number of H200 chips are being produced as the company was focusing on its Blackwell and Rubin chips.

Nvidia’s H200 chip, which was deployed on a large scale in 2024, is manufactured by TSMC using 4nm process technology. The H200’s performance capabilities are approximately six times greater than its predecessor, the H20 chip, which was designed for the Chinese market in 2023.