Nvidia stops China H200 production for next-gen chips

NVIDIA Corporation has reportedly halted the production of its H200 artificial intelligence chips specifically designed for the market in China, according to a report from the Financial Times. The decision marks a significant shift in manufacturing priorities as the company reallocates its resources toward next-generation hardware. Sources familiar with the matter indicated that the United States-based chipmaker has redirected production capacity at Taiwan Semiconductor Manufacturing Co. (TSMC). The manufacturing slots previously used for the H200—considered Nvidia's second-most advanced AI processor—are now being dedicated to the upcoming Vera Rubin architecture. Although Nvidia recently disclosed that it had obtained licenses from the American government to ship limited quantities of H200 chips to Chinese clients, this latest production halt suggests the company does not anticipate substantial sales volume in that region for the foreseeable future. This development follows a statement from a Commerce Department official last month, who noted that no H200 units had actually been sold to customers in the Chinese market yet. The current situation persists despite the administration of President Donald Trump providing a formal green light for China-bound sales of the H200 in January. Industry observers note that while approval was granted, actual shipments have remained stagnant due to various regulatory guardrails embedded in the export process. As of the report's release, TSMC has declined to comment on the matter, and Nvidia has not yet responded to inquiries regarding the production shift.