Nvidia Resumes Production of China-Bound AI Chip Amidst Evolving Export Controls

Nvidia is restarting manufacturing of its H200 AI chip, designed to comply with U.S. Export restrictions to China, CEO Jensen Huang announced on Tuesday, March 18, 2026. This move comes after the company received licenses from the U.S. Government to export the chip and began taking orders several weeks ago, reversing a halt in production that began last year due to increasing regulatory hurdles [SCMP], [Yahoo Finance].

Regulatory Hurdles and License Acquisition

Last year, Nvidia paused the manufacturing of the H200 chip, which is based on its Hopper technology, due to growing regulatory challenges in both the U.S. And China [SCMP]. The resumption of production follows the acquisition of export licenses from the U.S. Government, enabling Nvidia to fulfill existing orders and ramp up its supply chain [Yahoo Finance].

Impact on Revenue Forecasts

Despite the restart of H200 chip production for the Chinese market, Nvidia clarified that these sales are not included in its forecast of over $1 trillion in revenue expected from its Blackwell and Rubin AI chips by the end of 2027 [SCMP]. The Blackwell and Rubin chips represent Nvidia’s flagship AI technology, powering large language models like OpenAI’s ChatGPT.

Strategic Shift and Financial Considerations

This decision marks a significant strategic shift for Nvidia, the world’s most valuable public company, as it navigates the complex landscape of AI chip exports to China [Yahoo Finance]. The company previously experienced a $5.5 billion financial impact due to U.S. Export restrictions and Chinese regulatory challenges [Yahoo Finance].

Broader AI Demand

Huang projected that demand for AI chips will exceed the $1 trillion forecast, stating, “In fact, we are going to be short. I am certain computing demand will be much higher than that” [Yahoo Finance]. This underscores the rapidly growing global demand for AI capabilities.