Nvidia has instructed key suppliers, including Amkor Technology, Samsung Electronics, and Foxconn, to suspend all work related to its H20 AI chips, designed specifically for the Chinese market. The move follows Beijing’s directive urging domestic tech firms to stop purchasing the chips over national security concerns.
China’s Cyberspace Administration summoned Nvidia last month, demanding technical details about the H20 chips. Authorities reportedly fear potential “backdoors” or remote-access vulnerabilities. Nvidia CEO Jensen Huang responded publicly, asserting:
“We’ve made very clear that H20 has no security backdoors. There never has been.”
The halt throws into doubt the chip’s re-entry into China, even after Washington recently approved export licenses for lower-end AI chips. U.S. lawmakers are now pushing for mandatory location-tracking systems on AI chips to prevent unauthorized shipments.
This development underscores the fragility of U.S.–China tech relations. Nvidia’s pivot may impact its revenue forecasts and reshape AI chip supply chains, especially as Chinese firms like Tencent and Byte Dance face pressure to diversify away from American hardware.
(source South China Morning Post)
—Agencies
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