Nvidia Orders Samsung, Amkor to Stop Work on H20 AI Chip for Chinese Market
Nvidia suspends H20 chip supply chain as Beijing summons buyers; US-China tech tensions intensify
Nvidia Freezes H20 AI Chip Production After Beijing Raises Security Concerns
Nvidia has instructed key suppliers to suspend production of its China-focused H20 artificial intelligence chip, deepening uncertainty over the company’s operations in one of its largest markets, The Information reported on Thursday.
The report, citing two people familiar with the matter, said Arizona-based Amkor Technology — responsible for advanced packaging — and South Korea’s Samsung Electronics, which supplies high-bandwidth memory chips, were told to halt work on the H20 this week.
Nvidia shares (NASDAQ: NVDA) closed at $174.98 (-0.24%) on Thursday, slipping further to $172.68 (-1.31%) in after-hours trading.
Neither Amkor nor Samsung immediately responded to Reuters requests for comment. Nvidia, in a statement, said:
“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.”
Chinese regulators summon buyers
The suspension follows Chinese authorities summoning domestic companies — including internet giants Tencent and ByteDance — to discuss concerns about the H20 chip and potential information-security risks linked to U.S. technology.
The H20 was developed to comply with U.S. export restrictions on advanced AI hardware to China, but rising political tensions have complicated its rollout.
