Nvidia Restarts H200 Chip Production for China After Weeks-Long Halt

Nvidia Fires Up H200 Manufacturing Again

Nvidia is back in the business of building AI chips for China. CEO Jensen Huang confirmed at the company's annual GTC conference in San Jose that production of the H200 processor is restarting after a turbulent few months of regulatory whiplash.

A Rollercoaster of Regulations

The saga began in December twenty twenty-five, when President Donald Trump approved limited H200 exports to China. Nvidia quickly ramped up mass production in early January, anticipating strong demand from Chinese tech giants. But the chips never left the warehouse. Chinese customs officials blocked the imports, and Beijing signalled that domestic companies should prioritise locally made alternatives first.

By early March, Nvidia had pulled the plug on H200 production entirely, redirecting its manufacturing capacity at TSMC toward its next-generation Vera Rubin platform. The decision reflected growing frustration at being caught between two competing regulatory regimes.

The Breakthrough

Huang told reporters that the situation has changed significantly compared to just two weeks prior, suggesting a breakthrough in the licensing process. Nvidia has secured US export licences for numerous Chinese clients, and purchase orders are already in hand. However, the exports come with strings attached, including mandatory US inspections and a twenty-five percent duty. Sales to China are also capped at no more than fifty percent of total H200 units sold to American customers.

Separate from the Trillion-Dollar Forecast

Importantly, the H200 restart is not factored into Nvidia's blockbuster projection that purchase orders for its newer Blackwell and Vera Rubin platforms will reach one trillion dollars through twenty twenty-seven. Any China H200 revenue would be purely additive to the company's outlook.

Unresolved Questions

Despite the optimism, no H200 chips had been sold to Chinese customers as of late February. Whether Beijing will ultimately allow large-scale imports, or attach conditions such as mandatory purchases of domestically made chips, remains the central unresolved question.