Nvidia Halts China-Specific H20 AI Chip Production, Information Says

Nvidia has instructed key suppliers, Arizona-based Amkor Technology and South Korea’s Samsung Electronics, to suspend China-specific H20 AI chip production, according to The Information, citing unidentified sources. The directive comes after Beijing has pressured local companies to avoid using the H-20s for security concerns.

Nvidia sent its communications this week on the H20 to Arizona-based Amkor Technology and South Korea’s Samsung Electronics, according to the two people. Amkor handles the advanced packaging of Nvidia’s H20 chips, a process that involves combining multiple components, while Samsung supplies high-bandwidth memory chips for the H20. -The Information

In a statement, Nvidia explained, „We constantly manage our supply chain to address market conditions,” adding that „allowing U.S. chips for beneficial commercial business use is good for everyone.”

*NVIDIA ORDERS SUSPENSION TO H20 CHIP PRODUCTION: INFORMATION

guess no chips for china

— zerohedge (@zerohedge) August 22, 2025

The suspension underscores Nvidia’s delicate balancing act in China, following President Trump’s reversal of a previous ban on the H20s and his decision to allow sales on the condition that the federal government collect 15% of revenue. However, last month, China’s Cyberspace Administration summoned Nvidia officials to address alleged „backdoor” security vulnerabilities in the H20s – claims that CEO Jensen Huang has denied, stressing the chips pose no security risks.

Related:

• China Urges Tech Giants To Avoid Nvidia H20 Chips After Trump Lifts Sales Ban

• China Probes Nvidia Over Alleged H20 AI Chip’s „Backdoor” Security Risks

Amkor, which handles advanced chip packaging, and Samsung, which supplies high-bandwidth memory in the H20 production process, received Nvidia’s order to halt production earlier this week. The Information reported that semi-finished H20s are piling up at Amkor. The future of the H20 chip in China remains unclear.

Here’s Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada’s first-take:

Nvidia’s decision to halt H20 chip production, as reported by The Information, follows the Chinese government urging local companies to avoid using the chip and creates fresh uncertainty over when Nvidia’s China business can recover. We had previously projected H20 shipments to China would resume no earlier than the end of this year. Although a delay might temper optimistic estimates for China, robust US hyperscaler demand and Blackwell adoption should offset the impact on Nvidia this year.

Recall that on July 15, U.S. Commerce Secretary Howard Lutnick told CNBC, „We don’t sell them our best stuff, not our second-best stuff, not even our third-best,” referring to the H20 chips. Chinese officials reportedly viewed the remark as „insulting.”

Shares in Nvidia fell about 1% in premarket trading in New York following the news. Shares are still trading near record highs, up 30% year-to-date as of Thursday’s close.

Nvidia’s decision to halt H20 chip production puts its China market in question – once accounting for 26% of its revenue – but has since tumbled to just 13% amid trade wars and tech restrictions.