Nvidia is thinking of boosting H200 chip output because of China’s high demand

After orders surpassed current levels, Nvidia notified its Chinese clients that it is thinking of expanding production capacity for its potent H200 AI chips.

The decision follows US President Donald Trump’s announcement last week that the US government will permit Nvidia to ship its second-fastest AI chips. The H200, to China in exchange for a 25% commission.

Nvidia is considering expanding its production due to the high demand for the chip from Chinese businesses.

“We are managing our supply chain to ensure that licensed sales of the H200 to authorized customers in China do not impact our ability to supply customers in the United States” a Nvidia spokesperson told Reuters. We are managing our supply chain to ensure that licensed sales of the H200 to authorized customers in China. Do not affect our ability to supply customers in the United States,» an Nvidia spokesperson told Reuters.

Reuters reported on Wednesday that major Chinese corporations, including Alibaba and ByteDance, had already approached Nvidia this week to buy the H200 and are interested in placing huge orders.

But there are still questions because the Chinese government hasn’t approved the H200 acquisition yet. According to one of the two sources and a third, Chinese officials convened emergency meetings on Wednesday to review the issue and determine whether to permit its shipment to China.

As the U.S. leader in AI chips concentrates on manufacture of its more sophisticated Blackwell and future Rubin lines. Very small quantities of H200 chips are now being made, according to Reuters.