Nvidia struggles to meet massive demand for its H200 artificial intelligence chips from Chinese technology companies. The company has asked TSMC to significantly ramp up production.
Chinese firms have placed orders for over 2 million H200 chips for 2026. This volume far exceeds Nvidia’s current stock of 700,000 units. This surge follows the easing of U.S. export restrictions on the H200 processor to China.
TSMC expects to begin expanded production in the second quarter of 2026 to address the shortfall. This move underscores TSMC’s critical role in the AI supply chain and points to a substantial near-term revenue boost for the manufacturer.
The situation raises concerns about a potential tightening in global AI chip supplies. Nvidia must now balance the robust demand from China with the needs of other markets.