Nvidia H200 chip parts suppliers halt output after China blocks shipments, FT reports

Core Viewpoint - Nvidia's H200 AI processors face shipment blocks to China due to directives from Chinese customs officials, impacting production and anticipated orders from Chinese clients [1][2][4] Group 1: Shipment and Production Impact - Suppliers of parts for Nvidia's H200 have paused production following the blockage of shipments by Chinese customs [1] - Nvidia had anticipated over 1 million orders from Chinese clients, with suppliers prepared for shipping as early as March [2] - Chinese customs authorities have informed agents that Nvidia's H200 chips are not allowed to enter the country [2] Group 2: Government Directives and Industry Response - Chinese government officials have warned domestic tech firms against purchasing the H200 chips unless absolutely necessary [2] - Authorities have not provided reasons for the shipment block and it remains unclear if this is a formal ban or a temporary measure [3] Group 3: Geopolitical Context - The H200 chip is a significant point of contention in U.S.-China relations, with strong demand from Chinese firms [4] - Uncertainty exists regarding whether Beijing intends to ban the chip to support domestic chip companies or if it is using the situation as a bargaining tactic in negotiations with the U.S. [4]