NVIDIA halts H200 AI chips for China, pivots production to Vera Rubin amid export uncertainty

China's Catch-22 Is Pushing NVIDIA to the Brink, and the Chipmaker Is Finally Fed Up With It

NVIDIA's ambitions for China are glooming down with each day, as a new report indicates the AI giant is now looking to scale back H200 production in favour of ramping up Vera Rubin production. We have reported extensively on the NVIDIA-China saga in the past as well, and one of the more common trends in these stories is that both NVIDIA and China seem to be running in cycles, trying to catch each other. We'll discuss this aspect further ahead, but for now, according to a Financial Times report, NVIDIA has halted production of the H200 AI chips, which were initially intended for the Chinese market. This comes after Jensen's extensive efforts to bring revenue from Chinese hyperscalers back into NVIDIA's finances, and the latest report clearly indicates that Team Green is now 'fed up' with the situation. Instead of waiting in a limbo, Nvidia has to move on to what it can achieve with certainty especially when there's a shortage of supply for its advanced stuff. This could in a way accelerate the Vera Rubin delivery and roll out. - Source via Financial Times It's important to note that NVIDIA initially factored in tremendous demand for their H200 AI chips coming in from China, with figures scaling up to 'millions of units'. The chipmaker had contacted supply chain partners to gear up for tremendous demand, specifically requesting that TSMC adjust production lines to capitalize on it. However, NVIDIA's optimism hasn't lasted long, as it was recently reported that the US administration is planning to limit H200 volume to 75,000 per customer, a figure far below what the company had been preparing for. It appears that NVIDIA's morale towards China, especially after the H200 approval, has died down, and the firm now intends to allocate its China capacity to Vera Rubin, given that the latter architecture is in high demand from global hyperscalers. NVIDIA's strategy here appears simple: the firm wants to prioritize certainty over expanding its revenue frontiers, and this makes sense given that Team Green operates a complex supply chain that requires consistency. By essentially moulding its plans to suit what China or the US wants, NVIDIA is leaving its partners confused. While the NVIDIA-China saga hasn't entirely concluded, the likely conclusion is that Team Green will stick to addressing customer demands other than those from China, at least until the political landscape remains consistent.

Nvidia Abandons China-Bound Chips To Fast-Track Vera Rubin - NVIDIA (NASDAQ:NVDA)

Nvidia Corp. (NASDAQ:NVDA) is adjusting its production strategy amid uncertainty over U.S. export approvals, which continue to limit shipments of advanced AI chips to China. China Strategy Recalibrated The company has reportedly halted production of its H200 AI chips intended for the Chinese market. Last week, Nvidia said it had received U.S. government licenses to ship "small amounts" of H200 chips to customers in China. However, the production shift suggests the company may not expect significant H200 sales in China in the near term, Reuters reported. Earlier this year, the Trump administration approved sales of the China-bound H200 chips, but shipments have remained stalled due to regulatory guardrails in the approval process. A U.S. Commerce Department official said last month that no H200 chips had been sold to Chinese customers. Recent changes to U.S. rules mean shipments to China and Macau are now reviewed on a case-by-case basis instead of being automatically denied, potentially reopening the market. NVDA Price Action Nvidia shares were down 0.21% at $182.66 during premarket trading on Thursday, according to Benzinga Pro data. The chipmaker became the first company ever to surpass a $4.5 trillion market capitalization last October, cementing its dominance in the AI semiconductor boom. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Nvidia halts China-bound H200 output, shifts TSMC capacity to Vera Rubin, FT reports

March 5 (Reuters) - Nvidia has stopped production of its second-most advanced artificial intelligence chips, known as H200 chips, intended for the Chinese market, the Financial Times reported on Thursday. The U.S. chipmaker has reallocated manufacturing capacity at chip contract maker TSMC away from making H200 chips to its next-generation Vera Rubin hardware, the report said, citing two people with knowledge of the matter. Reuters could not immediately verify the report. Nvidia and TSMC did not immediately respond to requests for comment. Last week, Nvidia said it had received licenses from the U.S. government to ship "small amounts" of its H200 chips to customers in China. However, this move suggests Nvidia does not expect any meaningful H200 sales in China in the near term. A U.S. Commerce Department official said last month that none of Nvidia's H200 chips had been sold to Chinese customers. In January, U.S. President Donald Trump's administration gave a formal green light to China-bound sales of Nvidia's H200 chips, but shipments remained stalled due to guardrails built into the process. (Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich)