Nvidia has instructed some of its key component suppliers, including Amkor Technology and Samsung Electronics, to suspend production of its H20 AI chip, which was specifically designed for the Chinese market. This move follows a directive from the Chinese government instructing local tech companies to stop purchasing the H20 chips due to alleged security concerns. The suspension comes after the Trump administration had previously allowed sales to resume following an earlier ban. As a result of the production halt, approximately 700,000 H20 chips are reportedly in limbo. In response to the restrictions on new H20 chips, China's AI industry is increasingly turning to refurbished and second-hand Nvidia GPUs, such as the A100 and H100 models, to meet demand. Nvidia stated that it is adjusting its supply chain to address these market conditions.