US-based chipmaker Nvidia has decided to halt production of its H20 artificial intelligence chip, developed specifically for China. The company took this step after the Chinese government instructed local technology companies to stop purchasing H20 chips.
Nvidia to halt H20 chip production
According to reports, Nvidia has requested Amkor Technology and South Korea’s Samsung Electronics to halt the production and packaging of its H20 chips. The company is also reportedly in talks with Foxconn (Hon Hai) to suspend H20 production. An Nvidia spokesperson said, “We are continuously managing our supply chain to adapt to market conditions.”
These recent developments have made the return of H20 chips to the Chinese market uncertain. The US government had previously approved export licenses, effectively allowing the banned chips to be shipped to China. However, following this approval, Chinese authorities summoned Nvidia, citing national security concerns regarding the H20 chips, and requested information about the chips.
Beijing claims that these chips may contain remotely operated surveillance technology or “backdoors.” Nvidia has denied these allegations. In recent months, China has notified major tech companies such as ByteDance, Alibaba, and Tencent to halt their H20 orders until a national security review is completed.
Behind these claims, China aims to strengthen domestic chip production and encourage AI companies to choose Chinese chips. What are your thoughts on this? Share your thoughts in the comments section below.
