Nvidia taps TSMC for new H200 chip orders amid surging China’s AI demand

Nvidia has turned to Taiwan Semiconductor Manufacturing Company (TSMC) to fulfil its strong demand for H200 chips as Chinese companies’ demand for chip orders surges.

As reported by Reuters, the US-based chipmaker firm has approached TSMC to increase the production of chips.

According to sources privy to the matter, Nvidia has received more than 2 million H200 chip orders for 2026 from Chinese tech companies.

Unfortunately, at the moment Nvidia cannot complete the orders as it currently holds just 700,000 units in inventory, sources said.

However, the details regarding the exact amount of production Nvidia intends to order from TSMC and their pricing are still unclear.

According to a third source, Nvidia has asked TSMC to start production of extra chips. It is expected that the production for new orders would begin in the second quarter of 2026.

Nvidia has decided which H200 variant it will export to Chinese clients along with pricing around $27,000 per chip.

Nvidia is set to ship its H200 AI-powered chips to China in mid-February, 2026.

Initial shipments will be delivered from the existing stock, totalling between 5,000 and 10,000 modules.

Earlier this month, President Donald Trump gave greenlight to Nvidia, allowing the firm to export H200 chips to China.

Navigating supply chain constraints

The recent move on the part of Nvidia raises questions over the availability of chips for global markets.

It also indicates potential tightening in global AI chip supplies as Nvidia must ensure a high-stake balance between fulfilling robust China’s demand and addressing bottlenecks in chip supplies.

The collaboration could exacerbate risks for Nvidia as Beijing has not yet given a nod for any shipment as the exports could hamper domestic AI semiconductor industry.

Nvidia’s spokesperson has issued a statement in response to details, “Licensed sales of the H200 to authorised customers in China will have no impact on our ability to supply customers in the United States.”

"China is a highly competitive market with rapidly growing local chip suppliers. Blocking all U.S. exports undercut our national and economic security and only benefited foreign competition,” spokesperson added.

Besides ramping up H200 production, Nvidia is also focusing on powerful Blackwell and upcoming Rubin chip lines.