"Nvidia is exploring the possibility of significantly expanding production of its H200 AI chip as demand from China rises sharply. That country will be allowed to import this GPU from February onwards due to the lifting of restrictions from the US. According to sources, the company has held talks with chip manufacturer TSMC to free up additional capacity, as current stock is far from sufficient to meet expected orders."
"According to Reuters, Chinese technology companies have collectively ordered more than two million H200 chips for delivery in 2026. Nvidia currently has a stock of approximately 700,000 units, including a smaller portion of GH200 Grace Hopper superchips. The majority consists of individual H200 versions. This gap between supply and demand is putting pressure on Nvidia's production planning. It is not yet clear exactly how many additional chips Nvidia wants to have produced, but according to insiders, the company has asked TSMC to prepare for upscaling."
"This fuels concerns about possible global shortages of AI chips, as Nvidia must continue to serve other markets at the same time. The situation is particularly sensitive because Chinese authorities have not yet given final approval for the import of the H200. The US government has recently allowed exports to China again, subject to conditions, but Beijing is still weighing up whether access to these advanced chips could slow down the development of its own semiconductor industry."
Demand from China has surged after US restrictions on H200 GPU exports were lifted, allowing imports from February. Chinese technology companies ordered over two million H200 chips for 2026, while Nvidia holds roughly 700,000 units including some GH200 superchips. Nvidia has engaged TSMC to free additional production capacity and has asked TSMC to prepare for upscaling, with expansion expected to begin in Q2 2026. The gap between ordered units and current stock raises concerns about potential global AI chip shortages and complicates production planning as Nvidia must continue serving other markets. Beijing has not yet granted final import approval.
Read at Techzine Global
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