Nvidia instructs suppliers to suspend H20 AI chip production amid US-China tensions and Beijing’s scrutiny over chip usage risks.
The Information reported on Thursday that Nvidia has told some component suppliers to suspend production of its H20 AI chip, designed specifically for the Chinese market. The report cited two people with direct knowledge of the communications.
According to the report, Nvidia instructed Arizona-based Amkor Technology to stop production of the H20 chips this week and notified South Korea’s Samsung Electronics that Amkor handles advanced packaging for the chip, while Samsung Electronics supplies high-bandwidth memory chips for the model.
Neither company immediately responded to a Reuters request for comment.
Meanwhile, a Nvidia spokesperson said, “We constantly manage our supply chain to address market conditions.”
“Both governments recognise that the H20 is not a military product or for government infrastructure. China won’t rely on American chips for government operations, just like the U.S. government would not rely on chips from China,” it said.
Last week, Chinese authorities summoned domestic companies, including major internet firms Tencent and ByteDance, over their H20 chip purchases, expressing concerns over information risks.
