Nvidia scrambling to meet demand for new H200 chip - report

(Sharecast News) - Nvidia is reportedly scrambling to meet strong demand for its H200 artificial intelligence chips from Chinese technology companies and has approached contract manufacturer Taiwan Semiconductor Manufacturing Co to ramp up production. Reuters cited sources on Wednesday as saying that Chinese technology companies have placed orders for more than 2 million H200 chips for 2026, while Nvidia currently holds just 700,000 units in stock.

The exact additional volume Nvidia intends ‍to order from TSMC remains unclear, the sources said. It was also understood that Nvidia has asked TSMC to begin production of the additional chips, and work is expected to start in the second quarter of 2026.

In response to a request for comment from Reuters, Nvidia said that it continuously manages its supply chain.

A spokesperson said: "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."

TSMC declined to comment and China's Ministry of Industry ​and Information Technology did not immediately respond to a request for comment from Reuters.