Nvidia Considers Halting H2O Chip Production Following China’s Purchase Restrictions

Nvidia has asked suppliers, including Amkor, Samsung, and Foxconn, to halt production of its China-specific H20 AI chips after Beijing restricted purchases over alleged security concerns. China fears the chips may contain “backdoors” or tracking technology. Nvidia CEO Jensen Huang stated the chips have no such vulnerabilities and emphasized their commercial, not military, use. The move follows U.S. export license approvals and ongoing discussions with Chinese authorities. Nvidia recorded a $4.5 billion writedown on unsold H20s due to export curbs, highlighting challenges amid U.S.-China trade tensions and Beijing’s push for domestic chip self-sufficiency.