Nvidia (NVDA.O) is trying to meet Chinese technology businesses’ high demand for its H200 artificial intelligence chips and has approached contract maker Taiwan Semiconductor Manufacturing Co (2330.TW) to increase output.

Two people stated Chinese IT companies had ordered over 2 million H200 processors for 2026, while Nvidia has only 700,000 in stock.

The additional amount Nvidia will order from TSMC is unknown, they claimed. A third source said Nvidia had asked TSMC to start making the extra chips in the second quarter of 2026.

Nvidia and TSMC negotiations and Chinese demand details have not been revealed. According to sources, Nvidia will sell Chinese customers H200 variants at $27,000 per chip.

China has fast-growing indigenous chip providers and is competitive. Blocking all U.S. exports reduced national and economic security and favored foreign competitors.”
TSMC and China’s Ministry of Industry and Information Technology did not reply to requests for comment.