Media reports say that Nvidia (NVDA) plans to start shipping its second-most powerful artificial-intelligence (A.I.) microchip to China in February of next year.
Initial orders are expected to total as many as 80,000 H200 A.I. microchips, according to reports.
Nvidia has reportedly told Chinese customers that it plans to add new production capacity for the processors as demand skyrockets.
While the administration of U.S. President Donald Trump has cleared the sale of the H200 chips to China, the government in Beijing has yet to approve any H200 chip purchases, creating some uncertainty for Nvidia.
Still, Nvidia is ramping up production of the H200 microchips in anticipation of the company securing the required government approvals for sales in China.
The planned shipments would be the first to China after Trump said earlier in December that he would allow such sales with a 25% fee going to the U.S. government.
The move represents a major policy shift from the previous administration of U.S. President Joe Biden, which banned advanced A.I. microchip sales to China on national security concerns.
Trump's decision comes as China pushes to develop its domestic A.I. microchip industry.
Chinese government officials have held meetings to discuss the matter ?and are weighing whether to ?allow Chinese firms to purchase Nvidia’s microchips.
Reports say the Chinese government is considering limiting the number of Nvidia chips that can be purchased by domestic companies in the Asian nation.
For Chinese technology giants such as ?Alibaba (BABA), the H200 microchip would provide access to processors ?six times more powerful than the H20, a downgraded chip that Nvidia designed specifically for the Chinese market.
NVDA stock has risen 30% this year to trade at $180.99 U.S. per share.
Related Stories
