Nvidia has reportedly told component suppliers to stop work on its H20 AI chip for China after Chinese authorities urged local companies to cease purchasing them due to security concerns. This directive follows China's strong discouragement of H20 purchases, leading Nvidia to halt production on the AI chip specifically designed for the Chinese market to comply with U.S. export restrictions.
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Chinese authorities last week encouraged local companies to stop buying the H20 chips, citing security and information risks.
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Nvidia has instructed component suppliers, including Amkor Technology and Samsung Electronics, to suspend production related to the H20 chip.
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The H20 chip was designed for China to comply with earlier U.S. export curbs, but it faced low demand and resistance from the Chinese government.
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A Nvidia spokesperson commented that the company "constantly manage[s] our supply chain to address market conditions," according to SRN News.
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Nvidia CEO Jensen Huang has stated the company is in talks with Washington about a potential follow-up chip for China, but decisions are up to the U.S. government.
