Nvidia Considers Increasing H200 Chip Output with Rising Demand from China

Increasing demand from Chinese tech giants follows Washington’s green light to ship Nvidia H200 chip to China with a 25% levy, pending Beijing’s approval.

Nvidia, a major chip manufacturer in the United States, has told Chinese clients that it is considering raising production capacity for its powerful H200 AI chips after orders exceeded current output levels. This move follows President Donald Trump's statement on Tuesday that the U.S. government will permit Nvidia to transport its second-fastest AI chips, the Nvidia H200 chip, to China in exchange for a 25 percent fee.

Nvidia may increase its capacity due to the high demand for the chip from Chinese companies. Since the discussions are confidential, they declined to be recognized. A Reuters request for comment was not immediately answered by Nvidia.

On Wednesday, big Chinese companies like Alibaba and ByteDance have already contacted nvidia h800 this week about buying the Nvidia H200 chip and are eager to place sizable orders. But there are still uncertainties because the Chinese government hasn't approved any purchases of the H200. Chinese officials held an urgent meeting on Wednesday to address the issue and will choose whether to permit its shipment into China.

As the US AI chip leader focuses on developing its most advanced Blackwell and future Rubin lines, only small quantities of Nvidia H200 chip are now in production.