Nvidia Corp has halted production of its H200 artificial intelligence chips intended for the Chinese market and reallocated the manufacturing capacity at Taiwan Semiconductor Manufacturing Company (TSMC) to its Vera Rubin product line, according to a Financial Times report.

The H200 is part of Nvidia's flagship line of AI accelerator chips used for training and running large language models and other artificial intelligence applications. The decision to cease China-bound H200 production represents a significant shift in the company's manufacturing strategy.

Instead of continuing H200 production for Chinese customers, Nvidia has redirected the TSMC fabrication capacity to manufacture chips for its Vera Rubin platform. The Vera Rubin line represents newer technology in Nvidia's product portfolio.

The reallocation comes amid ongoing trade tensions and export restrictions affecting advanced semiconductor technology transfers between the United States and China. U.S. export controls have limited American companies' ability to sell certain high-performance AI chips to Chinese customers.

TSMC serves as a key manufacturing partner for Nvidia, producing many of the company's most advanced chip designs at its facilities in Taiwan. The capacity shift indicates Nvidia is prioritizing production of certain product lines over others as it navigates regulatory constraints and market demand.