Nvidia has reportedly instructed some of its component suppliers to halt production activities related to its China-specific H20 graphics processing units, amid growing scrutiny from Chinese authorities, according to The Information. The directive follows recent orders from Beijing, directing local tech firms to stop purchasing these chips over national security concerns.
Nvidia has allegedly asked Amkor Technology, based in Arizona and responsible for advanced packaging of the H20 chips, along with South Korea’s Samsung Electronics, which supplies memory for the chips, to pause production. Separately, sources indicated that Nvidia has also requested Foxconn (Hon Hai) to suspend H20-related work.
A spokesperson for Nvidia stated that the company is continuously managing its supply chain in response to changing market dynamics.
This development casts further uncertainty over the re-entry of the H20 chips into the Chinese market, especially after the U.S. had recently approved export licenses for the chips, following an earlier ban in April.
Last month, China’s Cyberspace Administration summoned Nvidia, raising concerns about possible tracking features or remote access “backdoors” in the chips. U.S. lawmakers have also proposed legislation mandating enhanced security in advanced AI chips.
