Nvidia chip orders surge… China says "halt purchases for now"

H200 demand surges as U.S. eases restrictions

Authorities seek to control the pace to protect domestic AI chips

The Chinese government is said to have instructed some technology companies to "temporarily suspend purchases" of Nvidia’s artificial intelligence (AI) chip, the H200. The move is seen as an attempt to rein in the pace of buying after Chinese companies’ purchase orders spiked following the easing of U.S. export controls on China.

On the 7th (local time), The Information, an information technology (IT) outlet, reported citing multiple sources that the Chinese government directed some tech companies this week to "put Nvidia H200 purchase orders on hold for now." The intent is to refrain from placing orders until the government decides whether to allow H200 purchases and, if so, what conditions to attach. One source said, "The government does not want companies to compete to secure H200 chips before the review is completed."

The measure is interpreted as a response to a wave of purchases by Chinese companies after U.S. President Donald Trump recently allowed H200 sales to China. According to Reuters, Nvidia has reportedly already received orders for more than 2 million H200 units. That far exceeds Nvidia’s current inventory (about 700,000 units). In response, Nvidia asked Taiwan’s foundry TSMC to ramp up additional H200 production, with mass production expected to begin in the second quarter of next year. The H200 is said to be priced at $27,000 per unit (about 39 million won).

Chinese authorities are concerned that rising reliance on Nvidia chips could undermine the growth of the domestic semiconductor industry. The Chinese government has for some time encouraged tech companies and the public sector to use products from domestic semiconductor firms instead of Nvidia.

In recent weeks, the Chinese government is said to have summoned chip designers and manufacturers, along with major tech companies, for a series of meetings to explore guidelines for H200 purchases. During the process, it reportedly assessed company-by-company demand for the H200 and conducted individual interviews. Chinese authorities are also said to be considering a plan that would require companies buying H200s to also purchase a certain proportion of China-made AI chips.

Jensen Huang, Nvidia’s chief executive officer (CEO), said at a press and analyst briefing on the sidelines of CES 2026 in Las Vegas on the 6th that "demand from Chinese customers is very strong," adding that "the supply chain is running and H200s are coming off the production line quickly."

On the possibility of China granting import approval, he said, "I don’t expect a separate announcement," adding, "When the purchase order arrives, that will tell you everything."

Reporter Lee Hye-in hey@hankyung.com