Nvidia to expand H200 chip offering as demand grows in China
Chinese tech groups are pressuring Nvidia to provide more clarity on the supply of its H200 AI chips.
Reuters, citing anonymous sources, reported that Nvidia has successfully persuaded the Trump administration to approve the sale of its H200 chips to China, and is now considering increasing chip production as Chinese companies rush to place orders.
This week, executives updated customers on current availability levels, acknowledging that production remains limited. The H200, which went into mass production last year, is the most powerful processor that Chinese companies can legally purchase from Nvidia. It is manufactured by “Taiwan Semiconductor Manufacturing Company” using its 4-nanometer process, although TSMC declined to comment on specific customer capacity.
Demand has surged after comments from US President Donald Trump that Washington would allow exports of the H200 to China but would impose a 25 percent tax on those sales. The decision has sparked interest from groups such as “Alibaba” and “ByteDance”, both of which have approached Nvidia for large orders.
“We are managing our supply chain to ensure that licensed sales of the H200 to authorized customers in China will have no impact on our ability to supply customers in the United States,” an Nvidia spokesperson said.
The chipmaker’s expansion of its H200 graphics processor could tap pent-up demand in a country that is rushing to develop its own AI chips. Competition and national security concerns in the West have prevented China from acquiring the latest and most powerful AI model training equipment, as companies have shifted their focus to efficiency over scale.
Beijing’s approval also remains unclear. According to various sources, Chinese officials held emergency meetings this week to assess whether H200 shipments should be allowed. One proposal under consideration would require buyers to tie purchases to a quota of locally produced chips, reflecting the government’s efforts to foster a local AI hardware ecosystem.
As China accelerates its domestic AI ambitions and Washington selectively eases export controls, the H200 has become a center of both commercial opportunity and political calculation. Whether Nvidia can meet demand will depend not only on factory capacity but also on decisions made in capitals on both sides of the Pacific.
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