Tech war: China semiconductor expert suggests vigilance in buying Nvidia’s H200 AI chips

Influential Chinese semiconductor expert Wei Shaojun urged caution for mainland companies that place orders for Nvidia’s H200 artificial intelligence chips, as it remained a puzzle why the US government would make these advanced integrated circuits available to the country.\n“The US’ inconsistent stance on advanced chips – alternating between limited easing and renewed pressure – has left users struggling to discern its true strategic intent,” Wei, vice-president at the China Semiconductor Industry Association, said in an interview with the Global Times.\nAccording to Wei, who also serves as a professor at Tsinghua University and Peking University, China’s semiconductor industry must remain highly vigilant of US export controls, while continuing to drive self-sufficiency in advanced chip development.\nWhile admitting that importing advanced computing products could help address short-term demand from areas that include scientific research, healthcare and smart cities, he said: “China’s determination to adhere to independent innovation should not waver.”\nWei’s assessment put a frame of reference on US President Donald Trump’s decision last month to greenlight the release of H200 chips to China and Nvidia CEO Jensen Huang’s optimism about “strong demand” for the H200 in the world’s second-largest economy.\nAccording to Nvidia chief financial officer Colette Kress, the US chip developer has applied for licences to sell the H200 chips to China, but was waiting for approvals from the US and other governments to ship them.\n\nChinese social media giant ByteDance, owner of TikTok and Douyin, planned to spend about 100 billion yuan (US$14.3 billion) on Nvidia’s AI chips in 2026, a hefty increase from about 85 billion yuan in 2025, if the US company was allowed to sell its H200 graphics processing units to China, the Post reported last month.\nHuang on Tuesday said Beijing was not expected to make a formal announcement about approving H200 imports, but evidence would be reflected in the orders made by the company’s Chinese clients.\nNvidia was currently ramping up production of the H200 for Chinese firms, Huang said at a press conference at the CES trade show in Las Vegas. He said customer demand was “quite high”.\nThe US firm was requiring full upfront payment from Chinese customers seeking its H200 chips, which would hedge it against uncertainty over Beijing’s approval of the shipments, according to a Reuters report that cited two people briefed on the matter.\nNvidia had imposed unusually stringent terms, with no options to cancel, ask for refunds or change configurations after placement, the people said.\nThe US chip designer was scrambling to meet strong demand for the H200 from Chinese technology companies and had approached contract manufacturer Taiwan Semiconductor Manufacturing Co to ramp up production, according to a December report by Reuters, which cited sources.\nChinese tech companies had placed orders for more than 2 million H200 chips for 2026, while Nvidia currently held just 700,000 units in stock, two of the sources said.\n