Categories: Technology

Nvidia’s Massive Chip Expansion Amid China’s Surging Demand

Reuters reports that Nvidia has already approached TSMC to significantly increase the production volumes of H200 accelerators. Recently, the U.S. authorities permitted the company to supply these chips to China. According to two Reuters sources, Chinese companies have already placed orders for more than 2 million H200 chips for 2026. This is a substantial amount, as Nvidia currently only holds 700,000 units in stock.

While it is unclear exactly how many additional chips Nvidia will order from TSMC, there could be constraints regarding TSMC’s available production capacities. However, production of additional chips is reported to start only in the second quarter of 2026.

It is important to note that like other accelerators, the H200 uses HBM memory, so even more will be needed now. Nvidia is reportedly set to offer a highly attractive price of $27,000, significantly lower than its predecessor, the H100, which sold for approximately $40,000-$60,000. Today, it was also reported that ByteDance alone plans to spend around $14.29 billion on Nvidia accelerators in 2026.

Ethan Cole

Ethan Cole focuses on hardware and products, providing reviews and insights on the latest tech gear and devices.

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