Nvidia weighs increasing H200 AI chip output as China demand surges after U.S. export green light

Summary

Nvidia is evaluating adding production capacity for its H200 AI chips to meet heavy interest from Chinese customers after the U.S. said exports could proceed under a fee structure. The story matters because it shows how quickly demand can rebound when policy constraints loosen—even partially—and how supply planning becomes a geopolitical decision, not just an operations one. It also highlights a second-order constraint: advanced foundry capacity (notably at TSMC) is finite, and Nvidia is balancing current-gen demand (H200) against ramping its newest lines. If Beijing adds conditions (e.g., bundling domestic chips), the “AI chips into China” channel could morph into an industrial-policy lever rather than a straightforward sale.