Nvidia H200 Chips Pile Up in Hong Kong as China Holds Back Import Approvals

Nvidia's H200 AI chips destined for China have been stuck in Hong Kong warehouses, as Chinese authorities have not yet approved large-scale imports, despite the U.S. easing export restrictions. Approximately 600,000 of these chips, valued at $20 billion to $30 billion, are currently held in Hong Kong. Chinese authorities have allowed limited imports for select companies, which has delayed the entry of larger shipments.

The exact number of chips is being disclosed publicly for the first time. China's move is seen as an attempt to bolster its domestic semiconductor industry and manage its reliance on U.S. technology. While Chinese companies are accelerating their own chip development, the H200 chip, considered more powerful than domestic alternatives, is attractive for training large-scale AI models due to its compatibility with Nvidia's software ecosystem.

Major tech companies like Alibaba, ByteDance, and Tencent have reportedly secured limited quantities of H200 chips, far below their demand. The lack of approval for large-scale shipments has pushed prices in China's informal market. Some Chinese tech firms are also seeking Nvidia's RTX Pro 5500 graphics cards, which comply with U.S. export controls.

The divergence between U.S. and Chinese policies on semiconductors is creating uncertainty in the global supply chain.