NVIDIA Considers Expanding H200 Chip Production Following Renewed Access to Chinese Market

Nvidia is assessing a potential increase in production of its H200 graphics processing units as demand from Chinese customers accelerates following recent U.S. approval to resume sales, according to reports cited by Reuters. The decision comes after the U.S. Department of Commerce authorized exports of the advanced Hopper-generation chips to China, allowing sales under a framework that grants the U.S. government a 25% share of related revenue.

The H200, Nvidia’s most powerful processor from its previous AI training lineup, had been restricted under earlier export proposals. With the approval in place, Chinese technology companies are reportedly moving quickly to secure supply, viewing the H200 as a significant step up from the lower-performance H20 models previously available in the market. Nvidia is now evaluating whether to add manufacturing capacity to meet this surge in interest.

The expansion remains contingent on final import decisions by Chinese authorities. Nvidia said it is managing its supply chain to ensure that licensed sales to China do not affect availability for customers in the United States, as global competition for advanced AI hardware continues to intensify.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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