Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) is rushing to keep up with strong demand from Chinese tech firms for its H200 AI chips and has asked contract manufacturer Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) to help ramp up production, according to Reuters.
Sources told the news agency that Chinese tech firms have placed orders for more than 2 million H200 chips for delivery in 2026, while Nvidia currently has only about 700,000 units in stock.
The precise volume Nvidia plans to add to its order book at TSMC is unclear, though a third source told Reuters the US chipmaker has asked TSMC to begin producing additional chips, with work expected to start in the second quarter of 2026.
The move highlights mounting pressure on global AI chip supplies, as Nvidia seeks to balance strong demand from China with tight availability elsewhere. It also underscores the risks Nvidia faces in China, where Beijing has yet to approve shipments of the H200, despite the US administration of President Donald Trump only recently allowing exports of the chip to the country.
The talks between Nvidia and TSMC, as well as the scale of Chinese demand and pricing, have not been previously reported. Nvidia has decided which H200 variants it will offer to Chinese customers and plans to price them at around $27,000 per chip, the sources said.
The potential order would mark a significant expansion of H200 production, even as Nvidia focuses on scaling its newer Blackwell and upcoming Rubin chip lines.