Nvidia has reportedly stopped producing its H200 artificial intelligence chips intended for the Chinese market, according to a report published Thursday by the Financial Times. The H200 is the company’s second most advanced AI chip and had been expected to play a role in supplying high performance computing power to customers in China.

The report states that Nvidia has redirected manufacturing resources at Taiwan based chip contract manufacturer TSMC away from H200 production. Instead, the company is focusing that capacity on its next generation hardware platform known as Vera Rubin. The information was cited from two individuals familiar with the matter. Reuters noted that it was unable to independently confirm the report. Representatives from both Nvidia and TSMC did not immediately respond to requests for comment regarding the reported production shift.

Earlier developments suggested that Nvidia was still pursuing limited sales of the H200 in China. Last week, the company said it had received approval from the United States government to ship small quantities of the chips to Chinese customers. However, the decision to halt production aimed at that market indicates that Nvidia may not expect significant demand or large scale shipments in the near future.

U.S. government officials have also indicated that the chips have not yet reached Chinese buyers. A representative from the U.S. Commerce Department said last month that none of Nvidia’s H200 chips had been sold to customers in China so far. In January, the administration of U.S. President Donald Trump formally approved potential exports of the H200 chips to China. Despite that approval, shipments have remained limited and slow due to strict regulatory conditions and safeguards built into the export process. These restrictions have continued to shape how advanced AI chips can be sold to Chinese technology companies.