Nvidia's H200 Chips in High Demand Amid Lifted Chinese Sales Ban
January 7, 2026
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With the recent lifting of the sales ban, Chinese tech giants like ByteDance are rushing to secure Nvidia's H200 graphics accelerators, aiming to fulfill their growing AI and data needs. But the question remains: will supply meet the surging demand?
Massive Orders from Chinese Companies
According to multiple sources familiar with the matter, Reuters reports that Chinese companies have placed orders exceeding 2 million H200 chips. This marks a significant increase from earlier estimates of 40,000 to 80,000 units ordered last week. The rapid escalation signals the high level of interest in these advanced accelerators as China seeks to bolster its AI infrastructure.
Limited Stock and Production Efforts
Currently, Nvidia has around 700,000 units of the two-year-old H200 accelerators in stock. To meet demand, Nvidia has approached TSMC to accelerate production. The H200 is built on TSMC's 4N process—an older yet reliable technology—distinct from the higher-performance Blackwell (4NP) chips still unavailable in China.
US and China Market Dynamics
Nvidia maintains that the H200 sales in China won't impact supply to US customers, emphasizing that approved commercial sales are carefully managed. A company spokesperson stated, "Offering the H200 to vetted commercial customers strikes a thoughtful balance." They also noted that China's rapidly growing local chip industry introduces fierce competition, and US export restrictions aim to protect national security.
Expected Delivery and Pricing
Shipments of the H200 are expected to commence in the second half of 2026. High-end 8-GPU systems featuring these chips are projected to cost around 1.5 million yuan (approximately $215,000). Despite being older, the H200 remains the top Nvidia GPU available for sale in China.
Export Regulations and Performance Advantages
US export controls during the Biden administration limited the performance of chips sold in China. However, earlier this month, the Trump administration authorized the shipment of H200s to China if Nvidia agreed to share 25% of the revenues, providing an exception to the rules.
The performance of the H200 surpasses Nvidia's H20—a stripped-down version designed for US export compliance—by a substantial margin. The H200 offers:
- 6x faster floating-point performance
- 50% more HBM3e memory
- 20% higher memory bandwidth
Chinese Tech Giants Eye the Chips
ByteDance, the parent company of TikTok, is among several Chinese hyperscalers interested in the H200. As per the South China Morning Post, ByteDance plans to purchase approximately $14 billion worth of these chips to support its AI ambitions.
Geopolitical Challenges and Future Uncertainties
Even with US government approvals, there's no certainty that the chips will reach mainland China. Chinese authorities are actively discouraging the use of foreign AI chips in state-funded data centers due to security concerns, including allegations of potential backdoors or remote kill switches—charges Nvidia strongly denies.
In conclusion, while demand for Nvidia's H200 accelerators in China is booming, geopolitical tensions and export restrictions continue to complicate the supply chain, making the future of these chips in the Chinese market uncertain.