Catenaa, Friday, August 22, 2025- Nvidia has instructed component suppliers, including Samsung Electronics and Amkor Technology, to stop production related to the H20 AI chip, the Information reported.
Nvidia issued those orders this week after Beijing urged local companies to avoid using the H20, the Information said, referring to a chip designed specifically for the Chinese market.
A production suspension would raise questions about fundamental demand for the H20, a less-powerful version of Nvidia’s cutting-edge AI accelerators that competes with similarly capable chips from the likes of Huawei Technologies and Cambricon Technologies.
Nvidia and Advanced Micro Devices(AMD) both recently secured Washington’s approval to resume lower-end AI chip sales to China, on the controversial and legally questionable condition that they give the US government a 15% cut of the related revenue.
But their Chinese customers are under pressure to adopt homegrown chips instead, part of a broader objective to build a world-class domestic industry and wean the country off US technology.
Nvidia Chief Executive Officer Jensen Huang on Friday reiterated that the H20 houses no such security backdoors. Huang, who was in Taiwan to discuss his upcoming Rubin chip with Taiwan Semiconductor Manufacturing, said Nvidia’s also in talks with Washington about a potential follow-up to the H20 for China, though that depended on the Trump administration.
“Offering a new product to China for AI data centres, the follow-on to the H20, that’s not our decision to make. It’s up to of course the US government,” Huang told reporters during an impromptu briefing at the airport. “We’re in dialogue with them, but it’s too soon to know.”
Nvidia stock was down by 1% on Friday morning; the stock is up by over 29% so far this year.
