emirates7 - Nvidia has told Chinese clients it aims ‍to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February, Reuters reported.

The U.S. chipmaker plans to fulfil initial orders from existing stock, with shipments expected to total 5,000 to 10,000 chip modules - equivalent to about 40,000 to 80,000 H200 AI chips.

Nvidia has also told ‌Chinese clients that it plans to add new production capacity for the chips, with orders for that capacity opening in the second quarter of 2026.

These moves come in response to a recent shift in US policy following President Donald Trump’s announcement allowing the sale of the advanced chips in exchange for a 25 percent fee, reversing the ban imposed by the previous administration.

While the shipments would provide major Chinese technology companies such as Alibaba and ByteDance with processing capabilities up to six times greater than currently available solutions, Beijing is reportedly reviewing the matter cautiously amid concerns that an influx of US chips could slow the pace of development of the domestic industry.