China rushes for Nvidia H200, supply talks begin

Nvidia is in discussions with Taiwan Semiconductor Manufacturing Co. (TSMC) about expanding production of its H200 AI chips, following large requests from Chinese technology companies for 2026 deliveries, according to people familiar with the talks.

Those sources stated that Chinese firms have placed orders for more than 2 million H200 chips for 2026, far exceeding Nvidia’s current stock of roughly 700,000 units. Work on the additional output is expected to start in the second quarter of 2026, though the extra volume Nvidia wants has not been publicly detailed.

The H200 is viewed by Chinese buyers as a significant step up from the previously available H20 chips, which were restricted, helping to explain the rush to secure supply. Sources said Nvidia has indicated pricing around $27,000 per chip, while an eight-chip module could cost about 1.5 million yuan, and some prospective buyers see that premium as worthwhile given the performance boost.

The order talks also sit under a cloud of policy uncertainty. While the Trump administration recently allowed H200 exports to China under a framework that includes a 25% fee, Chinese authorities have not yet approved imports, and officials are weighing how such sales could affect the country’s push to build up domestic AI chip suppliers, potentially including rules that tie purchases to local alternatives.

Nvidia stated that it continually manages its supply chain and argued that licensed sales to approved Chinese customers would not impact its ability to serve US clients, while TSMC declined to comment. Separately, a report cited by other coverage stated that ByteDance is considering spending approximately 100 billion yuan on Nvidia chips in 2026, contingent upon the success of H200 product sales in China.

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