Nvidia is scrambling to meet strong demand for its H200 artificial intelligence chips from Chinese technology companies and has approached contract manufacturer Taiwan Semiconductor Manufacturing Co (TSMC) to ramp up production, sources said.
Chinese tech companies have placed orders for more than 2 million H200 chips for 2026, while Nvidia currently holds just 700,000 units in stock, two of the people said.
The exact additional volume Nvidia intends to order from TSMC remains unclear, they said. A third source said Nvidia had asked TSMC to begin production of the additional chips, and work is expected to start in the second quarter of 2026.
The moves raise concerns over whether there could be further tightening in global AI chip supplies, as Nvidia now has to strike the right balance between meeting robust Chinese demand and addressing constrained supplies elsewhere.
They could also intensify risks for Nvidia, as Beijing has yet to greenlight any shipments of H200 chips. The administration of US President Donald Trump only recently allowed exports of the H200 to China.
The talks between Nvidia and TSMC, as well as details of the Chinese demand, have not been reported before. The pricing has also not been reported earlier.
