By TOI Tech Desk
Publication Date: 2026-03-06 09:00:00
After months of waiting and hoping for regulatory clearance from both the US and China, Nvidia has made a decisive call: it is moving on from China — at least for now. According to a report, the American chip giant has stopped production of AI chips intended for the Chinese market. Moreover, it has reportedly shifted its manufacturing capacity toward its next-generation hardware, signalling that it no longer expects meaningful sales to China in the near term.According to a report by The Financial Times, Nvidia has redirected manufacturing capacity at its key production partner, Taiwan Semiconductor Manufacturing Company (TSMC), away from making H200 chips – positioned as its China-compliant AI processor – toward its newer Vera Rubin architecture.Vera Rubin was unveiled earlier this year and is Nvidia’s most advanced chip design to date. It is built for complex AI systems and in heavy demand from major US tech companies, including OpenAI and Google. This signals that Nvidia is betting its resources where demand is certain rather than waiting for regulatory approvals that may never come.“Instead of waiting in limbo, Nvidia has to move on to what it can achieve with certainty — especially when there’s a shortage of supply for its advanced stuff. This could in a way accelerate the Vera Rubin delivery and roll out,” one person with knowledge of the plans was quoted as saying.
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