NVIDIA is shifting its manufacturing capacity at Taiwan Semiconductor from the H200 chip to the next-generation architecture Vera Rubin, a strategic pivot that reflects the company's latest assessment of the current regulatory environment.On Thursday, the Financial Times reported, citing two informed sources, that NVIDIA has suspended production of the H200 chip for specific markets and is reallocating the capacity originally intended for the H200 chip at Taiwan Semiconductor to Vera Rubin.NVIDIA's Chief Financial Officer Colette Kress stated during the earnings call last week that although the U.S. government has approved a small number of H200 product exports, &#34;we have not generated any revenue to date and do not know if any exports will be approved.&#34;This adjustment means that NVIDIA no longer expects large-scale sales of the H200 in the near term. Informed sources indicated that this move may accelerate the delivery and launch process of Vera Rubin, which is currently in high demand from tech giants like OpenAI and Google.<h2>H200 Capacity Shelved, Vera Rubin Takes Over</h2>The H200 is an earlier generation AI processor from NVIDIA, previously positioned as a compliant product under U.S. export control requirements. Vera Rubin is NVIDIA's latest chip architecture released earlier this year, designed for more complex AI systems, with strong demand in the high-end computing market.According to informed sources within NVIDIA speaking to the Financial Times, the company has produced approximately 250,000 H200 chips. If only limited orders are ultimately approved, the existing inventory is sufficient to meet the corresponding demand.&#34;Rather than waiting in uncertainty, NVIDIA must turn to achievable targets, especially in the context of high demand for advanced products,&#34; one informed source stated.<h2>Approval Process Stalled, Supply Chain Preparations in Vain</h2>NVIDIA had previously made significant efforts to secure sales approval for the H200. In December of last year, after President Trump signaled that sales would be allowed, NVIDIA accelerated its production pace. According to previous reports from the Financial Times, the company had anticipated orders from customers exceeding 1 million units, and suppliers had been working around the clock to stock up, with plans to begin deliveries as early as March this year.NVIDIA CEO Jensen Huang stated in early January that demand was &#34;very strong, and we have activated the supply chain, with H200 in production on the assembly line.&#34; However, the approval process subsequently stalled.Despite the shift in capacity, NVIDIA has not completely ruled out the possibility of restarting H200 production. Informed sources indicated that if there is a policy turnaround, NVIDIA could reallocate or increase H200 supply chain capacity within a maximum of three months, and the existing inventory could cover demand and delivery during this period

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NVIDIA has partially halted the production of the H200 chip and is shifting TSMC's related capacity to the next-generation architecture Vera Rubin. Behind this is a pragmatic compromise regarding the reality of the delayed U.S. export approvals. Approximately 250,000 units of H200 are waiting for the policy window, while OpenAI and Google are competing for the next-generation computing power products

- NVIDIA is shifting its manufacturing capacity from H200 chips at TSMC to the next-generation Vera Rubin architecture, reflecting the company's assessment of the current regulatory environment.  
- Reports indicate NVIDIA has paused H200 production for specific markets and reallocated that capacity to Vera Rubin, with strong demand from tech giants like OpenAI and Google.  
- Despite the shift, NVIDIA has not ruled out the possibility of resuming H200 production if regulatory conditions change, as existing inventory could meet any immediate demand.

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NVIDIA capacity major adjustment: H200 makes way for the next generation chip Vera Rubin