Nvidia halts China-only H20 chip production; what’s behind the sudden pause?

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Nvidia, opens new tab has told some component suppliers to suspend production of its H20 AI chip, designed specifically for the Chinese market, the Information reported on Thursday, citing two people with direct knowledge of the communications.

According to the report, Nvidia instructed Arizona-based Amkor Technology, opens new tab to stop production of the H20 chips this week and also notified South Korea's Samsung Electronics.

Amkor handles advanced packaging for the chip, while Samsung Electronics supplies high-bandwidth memory chips for the model.

Neither companies immediately responded to a Reuters request for comment.

Meanwhile, Nvidia spokesperson said in a statement, "We constantly manage our supply chain to address market conditions."

"As both governments recognise, 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.

This comes as Chinese authorities last week summoned domestic companies, including major internet firms Tencent (0700.HK), opens new tab and ByteDance, over their H20 chip purchases, expressing concerns over information risks.