Nvidia asks TSMC to increase H200 chip production for the Chinese market

Nvidia asks for increased chip production to TSMC. (Photo. unsplash) 

JAKARTA - After the sale of H200 chips was allowed in China, Nvidia immediately received many requests. To meet the demand, Nvidia asked TSMC to increase its production.

This needs to be done so that Nvidia can overcome the limitations of stock. The demand from companies in China is known to have exceeded 2 million units of H200, but Nvidia's inventory is only 700,000 units.

Therefore, the number of units produced needs to be increased. The increase in production is expected to begin in the second quarter of next year. It is not known exactly how much additional demand Nvidia has submitted to TSMC.

Each unit of the H200 chip sold to China is priced at 27,000 US dollars (Rp450 million). Although the US has granted export permits, Beijing has not officially given the green light.

This poses an uncertain risk for Nvidia's chip sales. However, to date the company has confirmed that its chip sales to China will not disrupt supplies in the US.

Nvidia said it continued to manage the supply chain strictly to avoid more severe shortages. The company also stated that blocking exports to China would harm the US economy.

"China is a highly competitive market with rapidly growing local chip suppliers. Blocking all US exports would undermine our national security and economy and only benefit foreign competition," Nvidia said, launching from Reuters on Wednesday, December 31.