Nvidia’s AI Chip Shipments to China Expected Before Lunar New Year
Nvidia is gearing up to ship its powerful H200 AI chip to China ahead of the Lunar New Year in mid-February, according to sources familiar with the situation. The tech giant plans to begin fulfilling orders from its existing stock, with estimates suggesting shipments could range between 5,000 to 10,000 chip modules. This translates to roughly 40,000 to 80,000 H200 chips hitting the market.
This development follows US President Donald Trump’s recent announcement that allowed such sales with a 25% fee, marking a notable shift from the Biden administration’s earlier prohibitions on advanced AI chip sales to China due to national security concerns. An interagency review regarding the H200 chip sales to China has been initiated, fulfilling Trump’s commitment to facilitate these transactions.
Even though the H200 is being phased out in favor of Nvidia’s newer Blackwell chips, it remains a key player in various AI applications. Meanwhile, Nvidia’s focus is shifting more towards the Blackwell and forthcoming Rubin product lines, contributing to the current supply limitations on the H200.
However, any shipments still rely on government approval, and factors could change based on decisions from the Chinese authorities. Earlier this month, Chinese officials convened to evaluate the situation and examine potential conditions for the shipments. A proposal on the table suggests that each purchase of H200 chips might need to include a certain proportion of domestic chips, aimed at fostering China’s own AI chip industry.
For major Chinese tech firms, like Alibaba and ByteDance, the arrival of these chips presents an opportunity. The H200 offers processing capabilities roughly six times greater than the downgraded H20 chip designed specifically for the Chinese market.
The renewal of H200 chip sales to China signifies a crucial moment in the ongoing trade tensions between the United States and China, especially coming in the realm of advanced technology. As China endeavors to boost its domestic AI chip development, access to high-performance chips like the H200 could significantly influence the nation’s advancements in this sector.
