An Nvidia chip is seen by means of a magnifying glass in Beijing, China, on August 1, 2025.
Vcg | Visible China Group | Getty Pictures
Nvidia has requested a few of its element suppliers to cease manufacturing associated to its made-for-China H20 normal processing items, as Beijing cracks down on the American chip darling, The Info reported Friday.
The directive comes weeks after the Chinese language authorities advised native tech firms to cease shopping for the chips because of alleged safety considerations, the report stated, citing folks with data of the matter.
Nvidia reportedly has requested Arizona-based Amkor Know-how, which handles the superior packaging of the corporate’s H20 chips, and South Korea’s Samsung Electronics, which provides reminiscence for them, to halt manufacturing. Samsung and Amkor didn’t instantly reply to CNBC’s request for remark.
A separate report from Reuters, citing sources, stated that Nvidia had requested Foxconn to droop work associated to the H20s. Foxconn didn’t instantly reply to a request for remark.
In response to an inquiry from CNBC, an Nvidia spokesperson stated “We continuously handle our provide chain to handle market circumstances.”
The information additional throws the return of the H20s to the China market unsure, after Washington stated it might problem export licenses, permitting the chip’s exports to China — their shipments had successfully been banned in April.
Final month, the Our on-line world Administration of China had summoned Nvidia over nationwide safety considerations associated to the H20s and had requested the corporate to offer info on the chips.
Beijing has raised concerns that the chips might have sure monitoring expertise or “backdoors,” permitting them to be operated remotely. In Could, Republican U.S. Senator Tom Cotton and a bipartisan group of eight U.S. Home representatives launched the Chip Security Act that may require semiconductor firms like Nvidia to incorporate safety mechanisms and placement verification of their superior AI chips.
Chatting with reporters in Taiwan on Friday, Nvidia CEO Jensen Huang acknowledged that China had requested questions on safety “backdoors,” and that the corporate had made it clear they don’t exist.
“Hopefully the response that we have given to the Chinese language authorities can be ample. We’re in discussions with them,” he stated, including that Nvidia had been “shocked” by the queries.
“As , [Beijing] requested and urged us to safe licenses for the H20s, for a while and I’ve labored fairly arduous to assist them safe the licenses, and so hopefully this can be resolved,” he stated.
Nvidia in an announcement on Friday stated “The market can use the H20 with confidence.”
It added: “As each governments acknowledge, the H20 isn’t a navy product or for presidency infrastructure. China will not depend on American chips for presidency operations, similar to the U.S. authorities wouldn’t depend on chips from China. Nonetheless, permitting U.S. chips for useful industrial enterprise use is nice for everybody.”
Final month, China had reportedly despatched notices to main tech firms and AI builders urging them in opposition to using the H20s, in what first had appeared as a delicate mandate. The Info later reported that Beijing had advised some companies, together with ByteDance, Alibaba and Tencent, to halt orders of the chips altogether, till the completion of a nationwide safety evaluate.
It had been seen as a serious win for Nvidia when Huang introduced final month that the U.S. authorities would enable gross sales of the corporate’s H20 chips to China. He had been lobbying in opposition to U.S. chip restrictions, which had impacted Nvidia’s enterprise within the profitable market.
In his feedback on Friday, Huang additionally disclosed a few of his discussions with U.S. President Donald Trump over the corporate’s abroad enterprise, saying that he had “knowledgeable the president of the significance of the American AI tech stack.”
“You recognize, that is the start of a brand new industrial revolution, and through this time, AI builders, AI fashions, and AI functions supporting the American tech stack is essential,” Huang stated.
“I additionally defined that AI goes to advance world wide, with or with out america, and it’s important for us to maximise our AI export expertise at a time when this business is essential,” he added.
Nvidia stated it had taken a $4.5 billion writedown on its unsold H20 stock in Could, after exports restrictions kicked in, and stated gross sales in its final monetary quarter would have been $2.5 billion larger with none curbs.
The nationwide safety scrutiny the H20s are actually dealing with from the Chinese language facet highlights Nvidia’s difficulties in conducting its enterprise amid commerce uncertainty between Washington and Beijing.
Chip business analysts have also said Beijing’s actions seem to bolster its dedication to its personal chip self-sufficiency campaigns and its intention to withstand the Trump administration’s plan to maintain American AI {hardware} dominant in China.
