Nvidia halts China-bound H200 output, shifts TSMC capacity to Vera Rubin, FT reports

March 5 (Reuters) – Nvidia (NVDA) halted production of its second most advanced processor artificial intelligence The chips, known as H200 chips, were aimed at the Chinese market, the Financial Times reported on Thursday.

The US chipmaker reallocated chip contract manufacturer TSMC’s (TSM) production capacity to next-generation Vera Rubin hardware instead of producing H200 chips, the report said, citing two people with knowledge of the matter.

Reuters could not immediately confirm the report. Nvidia and TSMC did not immediately respond to requests for comment.

Last week, Nvidia said it had received a license from the US government to ship “small quantities” of its H200 chips to customers in China. However, this move shows that Nvidia does not expect meaningful H200 sales in China in the near term.

A U.S. Commerce Department official said last month that none of Nvidia’s H200 chips have been sold to Chinese customers.

In January, US President Donald Trump’s administration officially green-lighted the sale of Nvidia’s H200 chips to China, but shipments were held up due to hurdles in the process.

(Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich)