Nvidia Corporation has instructed key component suppliers, including Foxconn, Samsung Electronics and Amkor Technology, to suspend work on its H20 artificial-intelligence processor, according to people familiar with the matter cited by Reuters and other trade publications. The chip, the most advanced product the U.S. company is currently permitted to ship to China under American export rules, was tailored to comply with limits imposed by Washington last year. The production pause follows reports that Beijing’s Cyberspace Administration has urged Chinese cloud and internet companies to avoid buying the H20, citing unspecified national-security risks. Asked about the matter, China’s Foreign Ministry said further information should come from domestic regulators. Speaking to reporters in Taipei on Friday, Nvidia Chief Executive Officer Jensen Huang said the H20 contains no security backdoors and poses no threat to U.S. or Chinese interests. Huang added that Nvidia has a sizeable inventory of H20 chips ready for delivery once it receives purchase orders from Chinese customers, and confirmed that the company is discussing a slower, export-compliant “B30A” processor with the U.S. government as a potential successor. Nvidia shares fell about 0.75% in late trading on Thursday and were down roughly 1% in early New York dealings on Friday, diverging from gains in other large-capitalization technology names. The setback extends a two-week slide for the stock and underscores the strategic and financial importance of Nvidia’s China business as geopolitical tensions continue to complicate the global chip supply chain.
NVIDIA CEO Dismisses Chip Security Allegations as China Orders Firms to Halt Purchases https://t.co/KKhCgxAuYU #technology #technews https://t.co/FToty2OCa5
Nvidia asks Foxconn to suspend work for H20 chip, Gotta move those 700K or so in stock first? Beijing not down with the "addiction to 4th tier technology" line coming from DC... https://t.co/hWgYlv8YPl
Beijing is reportedly urging Chinese companies to turn to domestic chips just weeks after Nvidia got the green light to sell in China again. https://t.co/08k4i8LJ10