Nvidia has instructed some suppliers to suspend production activities related to its H20 artificial intelligence chip tailored for the Chinese market, according to a report cited by Reuters on Yahoo Finance that references The Information.
Suppliers told to stop work on H20
The report said Nvidia told Arizona-based Amkor Technology to halt H20 production this week and also notified South Korea’s Samsung Electronics. Amkor is responsible for advanced packaging for the H20, while Samsung supplies high-bandwidth memory chips used in the model, according to the same report.
Neither company immediately responded to a Reuters request for comment. Nvidia did not comment on specific supplier instructions but said it manages its supply chain to address market conditions.
Nvidia statement on market conditions
“We constantly manage our supply chain to address market conditions,” a Nvidia spokesperson said in a statement carried by Reuters. The spokesperson also said, “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.”
Context around Chinese market concerns
The development follows Chinese authorities summoning domestic companies, including internet firms Tencent and ByteDance, last week regarding their purchases of the H20, expressing concerns over information risks, according to the same report. The H20 was designed specifically for the Chinese market.
According to Yahoo Finance’s Reuters report, the supplier notifications and subsequent company responses reflect ongoing adjustments around chip production and procurement in China. The report cited two people with direct knowledge of the communications for details on the production halt involving Amkor and Samsung.
Reuters noted that Nasdaq-listed Nvidia shares moved during regular and pre-market trading on the day of the report’s publication. However, the companies mentioned did not immediately provide further comment beyond Nvidia’s statement on supply chain management and the clarified use case of the H20 chip.
