NVIDIA is negotiating with Taiwan Semiconductor Manufacturing Co. (TSMC) to boost production of its H200 artificial intelligence chips. The goal is to satisfy strong demand from Chinese technology firms.
Chinese firms have reportedly placed orders exceeding two million H200 units for the year. NVIDIA’s current stock stands at approximately 700,000 units.
The U.S. government approved the export of these specific chips to China in December 2025. This approval includes a mandated 25% fee on each sale.
If the companies reach an agreement, additional production could begin by the second quarter of 2026. This potential expansion occurs while NVIDIA navigates U.S. export restrictions impacting its more advanced processors, including the Blackwell series.