Nvidia Halts H20 Chip Output Amid China Restrictions

Beijing – Nvidia has reportedly instructed several of its key suppliers to pause work on its China-focused H20 chips, following Beijing’s tightening stance on American-made semiconductors.

According to industry sources, companies involved in packaging, memory supply, and assembly of the H20 have been asked to suspend production until further notice. The development comes after Chinese regulators advised major local tech firms to halt purchases of the processors over national security concerns.

Nvidia confirmed that it regularly adjusts its supply chain to reflect market conditions. Chief Executive Jensen Huang recently told reporters that discussions with Chinese authorities are ongoing and that the company has made clear the H20 contains no “backdoors” or hidden tracking features.

The H20 was designed specifically for the Chinese market after Washington imposed restrictions on advanced AI chip exports earlier this year. Although U.S. authorities later granted export licenses, the latest directives from Beijing cast fresh uncertainty on the product’s future.

Earlier this year, Nvidia recorded a $4.5 billion writedown on unsold H20 inventory, highlighting the financial impact of shifting regulations. Analysts suggest that the situation underscores not only the challenges of navigating U.S.–China trade tensions but also Beijing’s determination to accelerate its own semiconductor self-sufficiency strategy.

In a statement, Nvidia emphasized that the H20 remains a commercial product intended for business applications rather than government or military use, insisting that “the market can use the H20 with confidence.”