NVIDIA H20 PRODUCTION HALTED AMID CHINA TENSIONS
Nvidia has asked key suppliers—including Amkor Technology, Samsung Electronics, and Foxconn—to suspend work on its China-focused H20 chips after Beijing raised national security concerns. Regulators fear possible “backdoors” in the processors, even as Nvidia insists the chips are safe and strictly for commercial use.
The uncertainty clouds Nvidia’s path in one of its largest markets. The company already took a $4.5B write-down on unsold H20 inventory and faces potential $20B annual revenue risk if China enforces a full ban. Analysts warn that while Nvidia may sustain sales with lower-end chips until 2026, domestic competitors could dominate by 2027 as Beijing pushes for semiconductor self-reliance.
CEO Jensen Huang emphasized ongoing dialogue with both Washington and Beijing, urging cooperation to avoid further disruption in global AI progress. But for now, the fate of the H20 in China remains highly uncertain.