Nvidia Pauses H20 AI Chip Production for China Amid Market Uncertainty
Photo Credit: @nvidia
Nvidia has reportedly instructed some suppliers to halt production of its H20 AI chip, a model specifically designed for the Chinese market. According to The Information, the company directed Arizona-based Amkor Technology to stop chip packaging activities and also asked South Korea’s Samsung Electronics, which provides high-bandwidth memory for the H20, to suspend related work. Both companies have not commented on the development.
Responding to reports, Nvidia said it regularly manages its supply chain based on changing market conditions. The company emphasized that the H20 is a commercial product, not intended for military or government infrastructure, and noted that just as the U.S. would not depend on Chinese chips for official use, China does not rely on American semiconductors for its government operations.
This decision follows concerns raised by Chinese regulators, who recently cautioned local firms, including tech giants Tencent and ByteDance, about potential risks linked to purchasing Nvidia’s H20 chips.
Source: The Economic Times
