Nvidia halts H20 chip production after China cites security concerns

After US nod, Nvidia's H20 shipments face fresh hurdles with Chinese regulators citing security risks; suppliers told to pause production

Nvidia’s plans to ship its H20 graphics processing units (GPUs) to China have hit a fresh roadblock, weeks after the US government cleared exports. Chinese regulators have flagged security concerns, prompting suspension of production and deliveries.

 

According to The Information, Nvidia has instructed suppliers—including Amkor Technology in Arizona and Samsung Electronics in South Korea—to halt work related to the H20. A Reuters report added that Foxconn had also been asked to pause related assembly lines. 

H20 orders suspended by Chinese tech firms

The latest setback follows Beijing’s advisory to leading tech companies such as Tencent, ByteDance and Alibaba to suspend H20 orders. Regulators cited risks of “information leaks” and potential backdoors in the chip that could enable remote access.

 

 

Last month, the Cyberspace Administration of China summoned Nvidia, seeking technical details of the processor. Scrutiny has since widened, with authorities meeting companies to discuss the alleged risks. 

A reversal for Nvidia after US approval

The development marks a sharp reversal for Nvidia, which only recently received US export approval in July. The green light rolled back an April ban under Washington’s tightened semiconductor curbs.

 

The H20 was specifically designed for China after restrictions blocked Nvidia’s most advanced GPUs. With production now paused, the chip’s future in one of Nvidia’s key markets remains uncertain.  ALSO READ | Nvidia working on new AI chip for China that outperforms the H20

Surprised by China's security concerns: CEO Jensen Huang

 

Speaking in Taipei on Friday, Nvidia CEO Jensen Huang said the company was “grateful” for the US decision but surprised at Beijing’s stance.

 

“Recently, China raised questions about security backdoors in our chips. We’ve made very clear — there are no backdoors, there never have been,” he said, according to Nikkei Asia. Nvidia is in discussions with regulators to address concerns.

 

The company also stressed that the H20 is not a military product and would not be used in government infrastructure. “China won’t rely on American chips for government operations, just as the US government would not rely on chips from China,” it said. 

With the H20 production now on hold, the chip’s future in one of the company’s most important markets remains uncertain.