Nvidia Considers Increasing H200 AI Chip Production for China

Surging Demand Drives Production Evaluation

Nvidia Corp is currently assessing the possibility of boosting production of its H200 AI chips to meet the unexpectedly high demand from Chinese customers. According to sources familiar with the company's internal discussions, the current production capacity is insufficient to meet the strong demand from various Chinese companies.

Regulatory Developments Facilitating Exports

The potential production increase follows an announcement by U.S. President Donald Trump that the U.S. government would allow Nvidia to export H200 processors to China under the condition that a 25% tariff be imposed on the sales. This regulatory development has been a significant factor in Nvidia's consideration of expanding production capacity.

Technical Significance of H200 AI Chips

The H200 is Nvidia's second-fastest AI chip, ranking just below its latest Blackwell series processors. The strong demand for this particular chip underscores the growing importance of AI technology in China's business landscape.

Market Implications

The potential increase in production by Nvidia could have significant implications for both the global AI chip market and the Chinese technology sector. It would not only demonstrate Nvidia's commitment to the Chinese market but also potentially strengthen its position in the global AI hardware supply chain.