After the U.S. approval, Nvidia is ramping up its AI chip production, as China has already ordered 2 million H200 processors. The company is approaching TSMC to help it with the new chip development as it has super tight supply for the moment.
It seems as if the U.S. authorities’ latest move has worked in their favor. Despite China’s warnings and new measures to prevent Nvidia chipsets‘ entry in the country.
But the table has now turned! Following the approval of the Nvidia chips by the Trump administration, China has placed an order of over 2 million H200 chip units.
That has made Nvidia head towards TSMC to gear up the AI chip making as currently, it holds only 700,000 H200 chipset units in stock. Well, that’s quite less to meet the required demand among Chinese customers.
Among 700,000 units, 100000 are GH200 Grace Hopper superchips as well as othe belongs to the normal H200 processors. The firm will ship both to China.
NVIDIA hasn’t disclosed how many more H200 chipsets it is asking TSMC to manufacture. Though some inputs suggest the Taiwanese tech giant will begin the work in the second quarter of 2026.
Regarding the price, the US chipmaker could sell H200 for $27000 per chip. The new moves have sparked new worries among global customers of Nvidia, as if the OEM will be able to balance chips between both countries.
The company said:
“Licensed sales of the H200 to authorized customers in China will have no impact on our ability to supply customers in the United States. China is a highly competitive market with rapidly growing local chip suppliers. Blocking all U.S. exports undercut our national and economic security and only benefited foreign competition.”
It’s unclear whether the speedy production of H200 AI chips will help Nvidia, as China hasn’t shown any green light to the company’s chipsets in its AI market. Only time can answer these puzzles.
(Image Credits: Huawei)
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