Nvidia Abandons China-Bound Chips To Fast-Track Vera Rubin

Nvidia Corp. (NASDAQ:NVDA) is adjusting its production strategy amid uncertainty over U.S. export approvals, which continue to limit shipments of advanced AI chips to China.

China Strategy Recalibrated

The company has reportedly halted production of its H200 AI chips intended for the Chinese market.

It has shifted manufacturing capacity at contract chipmaker Taiwan Semiconductor Manufacturing Co. Ltd. away from producing H200 chips and toward its next-generation Vera Rubin hardware, the Financial Times reported on Thursday, citing people familiar with the matter.

Last week, Nvidia said it had received U.S. government licenses to ship "small amounts" of H200 chips to customers in China.

However, the production shift suggests the company may not expect significant H200 sales in China in the near term, Reuters reported.

Earlier this year, the Trump administration approved sales of the China-bound H200 chips, but shipments have remained stalled due to regulatory guardrails in the approval process.

A U.S. Commerce Department official said last month that no H200 chips had been sold to Chinese customers.

Recent changes to U.S. rules mean shipments to China and Macau are now reviewed on a case-by-case basis instead of being automatically denied, potentially reopening the market.

NVDA Price Action

Nvidia shares were down 0.21% at $182.66 during premarket trading on Thursday.

The chipmaker became the first company ever to surpass a $4.5 trillion market capitalization last October, cementing its dominance in the AI semiconductor boom.

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