Nvidia is aiming to resume shipments of its advanced H200 AI chips to China by mid-February, according to sources cited by Reuters. These initial shipments would come from existing inventory, with expectations to deliver between 5,000 and 10,000 chip modules—equivalent to approximately 40,000 to 80,000 H200 chips—before the Lunar New Year holiday.

The company has also indicated plans to expand production capacity for China-bound H200 chips, with orders for new capacity potentially opening in the second quarter of 2026. However, the entire plan depends on obtaining formal approval from the Chinese government, which has yet to be granted.

This development follows US President Donald Trump’s recent decision to permit H200 chip sales to China, subject to a 25% fee, reversing restrictions imposed during the Biden administration. Reuters previously reported that the Trump administration initiated an inter-agency review of export licence applications for these chips. Nvidia’s H200 processor, part of the earlier-generation Hopper line, has been succeeded by the newer Blackwell chips but remains widely used in AI applications and is significantly more powerful than the H20 chips previously authorised for China.

For Chinese tech giants such as Alibaba Group and ByteDance, which have shown interest in the H200, resumption of shipments would substantially improve access to high-performance AI hardware. Nevertheless, Chinese authorities are reportedly considering conditions for approval, including the potential requirement that imported chips be bundled with domestically produced processors.

The news helped support US technology stocks during European and US trading on Monday, easing concerns over regulatory risks related to AI chip exports. However, political and approval uncertainties continue to influence the market outlook.

Original Source: Eamonn Sheridan of investinglive.com