Nvidia Taps TSMC As China Demand For H200 Chips Hits Two Million Units
Chinese tech companies have sought two million H200 chips for 2026 via official orders from Nvidia, which only has 700,000 currently in stock, according to a report.
Nvidia has reportedly sought the services of Taiwan Semiconducting Manufacturing Company to produce H200 AI chips to meet the burgeoning demand for them from Chinese tech companies.
The tech companies have requested 2 million H200 chips for 2026 via official orders from Nvidia, which only has 700,000 currently in stock, according to a report from Reuters.
It as of yet unclear how much of their supply deficit Nvidia plans to patch up with their arrangement with TSMC, but the latter is expected to begin production by 2026's second quarter.
This setup could also prove to be risky for Nvidia as China is yet to approve the import of H200 AI chips after US President Donald Trump recently lifted the export restrictions on them.
The semiconductor company has finalised the price, with the chips being offered to Chinese firms for $27,000 apiece.
"Licensed sales of the H200 to authorised customers in China will have no impact on our ability to supply customers in the United States," a spokesperson was quoted as saying.
"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," the spokesperson reportedly added.
Nvidia has also been working on scaling up its Blackwell chips as well as unveiling its new Rubin chip lineups. The H200 chips uses TSMC's 4-nanometer manufacturing process.
The company also has existing order obligations, with the first batch of the current stock of H200 chips expected to arrive before the Lunar New Year holiday in the middle of February.
