Nvidia considers boosting H200 production following a surge in China.

crypthub

4 days ago

Rising H200 Demand

Nvidia is considering expanding production of its H200 AI chip after Chinese firms flooded it with orders. The surge followed a U.S. rule allowing exports for a 25% fee, making the H200 the most sought‑after chip in China. Companies such as Alibaba and ByteDance have asked for large batches and delivery timelines. Nvidia says it will manage supply so U.S. customers are not affected, though exact numbers remain undisclosed.

Chinese Approval Uncertain

Beijing held emergency meetings to decide whether to permit the H200, weighing national security against market pressure. Officials are debating tying each imported H200 to a quota of domestically produced chips. The chip’s performance, up to three times stronger than China’s best AI accelerators, fuels lobbying for looser restrictions. Yet authorities worry that easy access could stall the development of a homegrown chip ecosystem.

Supply Challenges Ahead

Only a limited volume of H200s is currently fabricated at TSMC’s 4nm node, as Nvidia diverts capacity to its newer Blackwell and Rubin lines. Securing additional slots on TSMC’s high‑end fabs is competitive, especially with rivals like Google. Meanwhile China pushes its own silicon, exemplified by SMIC’s 7nm‑class Kirin 9030, which still lags behind leading 5nm processes. The tension between demand and manufacturing capacity remains a key bottleneck.