Nvidia looking to halt H20 chip production after China cracks down on purchases, reports say

Core Viewpoint - Nvidia is facing challenges in the Chinese market as the Chinese government has raised national security concerns regarding its H20 chips, leading to requests for production halts from its suppliers [1][4][7]. Group 1: Company Actions - Nvidia has instructed suppliers, including Amkor Technology and Samsung Electronics, to stop production of H20 chips due to the Chinese government's crackdown [2]. - The company has also communicated with Foxconn to suspend work related to the H20s [2]. - Nvidia's spokesperson stated that the company is constantly managing its supply chain to adapt to market conditions [3]. Group 2: Government Relations - The Cyberspace Administration of China summoned Nvidia to discuss national security concerns, specifically regarding potential tracking technology in the H20 chips [4]. - Nvidia CEO Jensen Huang acknowledged the Chinese government's inquiries about security "backdoors" in the chips, asserting that such features do not exist [5]. - Nvidia has been working to secure export licenses for the H20s, indicating ongoing discussions with the Chinese government [6]. Group 3: Market Implications - The situation raises doubts about the return of H20 chips to the Chinese market, especially after the U.S. government had previously allowed their sales [3][7]. - Analysts suggest that Beijing's actions reflect its commitment to chip self-sufficiency and resistance to U.S. dominance in the AI hardware sector [8].