January 1, 2026 /SemiMedia/ — Nvidia is working to boost production of its H200 artificial intelligence (AI) chips to meet surging demand from Chinese tech companies. Sources say the company has already contacted TSMC to increase manufacturing capacity for these high-demand chips.

By 2026, Nvidia has accumulated 2 million orders for its H200 chips, mainly from major Chinese internet firms. These orders are expected to be delivered throughout 2026. Nvidia currently holds a stock of 700,000 units, with 100,000 being the GH200 Grace Hopper superchips, which combine Nvidia’s Grace CPU with the Hopper GPU architecture. The remaining units are standalone H200 chips. All of these chips are designated for Chinese customers.

Although the exact number of additional chips Nvidia plans to order from TSMC is unclear, sources say that Nvidia has asked TSMC to begin producing these extra chips, with production expected to start in the second quarter of 2026. This potential order could significantly increase the production capacity for the H200, even as Nvidia focuses on ramping up production of its newer Blackwell chips and the upcoming Rubin chips.

The H200 chips, part of Nvidia's previous generation Hopper architecture, are produced using TSMC’s 4-nanometer process. First deliveries of the H200 are expected to arrive by mid-February 2026, before the Lunar New Year holiday.

Nvidia has also confirmed which H200 chip models will be sold to Chinese customers, with pricing set around $27,000 per chip. While a general price range has been provided, the final cost will depend on the specific purchasing agreement and volume. For example, an eight-chip module is expected to cost approximately 1.5 million yuan (approximately $213,000), slightly higher than the now-discontinued H20 module, which previously sold for about 1.2 million yuan (approximately $170,000).

These moves have raised concerns about the global AI chip supply being further strained, as Nvidia must balance meeting China’s strong demand with addressing supply issues in other regions. Additionally, whether China will approve the shipment of H200 chips adds another layer of risk for Nvidia. The Trump administration had recently allowed the export of H200 chips to China, but with a 25% tariff.

In response, Nvidia stated that selling the H200 chips to Chinese customers would not affect its ability to supply the U.S. market. A company spokesperson emphasized that while the Chinese market is competitive and local chipmakers are advancing rapidly, restricting all U.S. products would harm U.S. national and economic security, ultimately benefiting foreign competitors.