According to The Information websiteGet the messageAmkor Technology, which is responsible for the advanced packaging of NVIDIA's H20 AI chip, and Samsung, which provides memory components, have now stopped related processes under NVIDIA's instructions. Reuters further pointed out that Foxconn, which is responsible for subsequent assembly, has also stopped production.Asked to suspend work.
As early as April this year, the US government restricted NVIDIA's H4 AI chip sales to China on the grounds that it "could be used by China to develop military AI technology." This subsequently triggered criticism from NVIDIA CEO Jensen Huang. However, the US government subsequently reached an agreement with NVIDIA in July, allowing it to resume sales of H20 AI chips in the Chinese market.15% of sales revenue must be turned over to the US government.
However, the Chinese government, through regulatory agencies such as the Cyberspace Administration of China (CAC), has asked several large Chinese technology companies, including ByteDance and Alibaba, to suspend orders for NVIDIA's H20 AI chip because they believe the chip may haveSecurity concerns about "backdoors".
Chinese regulators claim that experts have pointed out that the H20 AI chip may be subject to remote tracking and control. NVIDIA CEO Jensen Huang, currently in Taiwan, has clarified that the H20 AI chip does not have a "backdoor" as rumored, and that they are communicating with the Chinese government in the hope of alleviating such concerns.
However, the Financial Times reported that the Chinese government's stance is not only about technological security but also political factors. When the US government allowed H20 AI chip shipments to resume in China, US Commerce Secretary Howard Lutnick stated in an interview that China would not be selling its best products, not even second- or third-best, but fourth-best, in order to keep Chinese developers reliant on US technology stacks. This statement offended Chinese authorities, leading to a deepening boycott of the H20 AI chip.
The H20 AI chip was originally intended as NVIDIA's AI chip for the Chinese market, but with regulatory concerns and growing political friction, the product may not be able to fulfill its intended purpose. However, NVIDIA appears to be developing a replacement based on its Blackwell graphics architecture. While it will only offer half the computing power of the Blackwell Ultra GPU, it will still be a key supply option for NVIDIA in the Chinese market.
For NVIDIA, the technological and political tussle between the Chinese and US governments has clearly created additional challenges for its development strategy in the Chinese market. The suspension of H20 AI chip production is more than just a simple supply chain adjustment; it reflects the increasing importance of AI technology as a core battleground in international political and industrial competition.
