Nvidia has halted production of H200 GPUs intended for use in the Chinese market in order to reallocate manufacturing capacity at TSMC foundries for its Vera Rubin chips.

According to a report from the FT, despite receiving the green light from the US government to ship H200 chips to customers in China, the company is not expecting to see significant sales there in the near term and believes its existing inventory will allow it to meet customer demands in the region.

The Trump administration first granted permission for Nvidia to export the GPUs to “approved customers” in China and other countries under certain conditions in early December, ultimately formalizing the approval in January of this year.

That same month, it was reported that the Chinese government had granted ByteDance, Alibaba, and Tencent permission to purchase Nvidia H200 chips. As reported by Reuters at the time, the three companies will be able to purchase more than 400,000 GPUs in total.

It had previously been reported that Chinese orders of Nvidia H200 chips were expected to far exceed the company’s existing supply, which sits around the 700,000 mark. However, in late February, an official at the US Department of Commerce told the House Foreign Affairs Committee that no H200 chips had yet been sold to Chinese customers.

Late last month, Nvidia reported a full fiscal 2026 revenue of $215.9 billion, up 65 percent from a year ago. The data center portion of that reached $193.7bn, up 68 percent.

The company is expected to detail its upcoming chip line-up at its GTC event next month, with CEO Jensen Huang claiming that the company will unveil “a chip that will surprise people," as well as other hardware.