Nvidia has asked Amkor Technology, based in Arizona, to suspend production of its H20 AI chip designed for the Chinese market and has also notified South Korea’s Samsung Electronics of the pause. Amkor handles the chip’s advanced packaging, while Samsung provides high-bandwidth memory for the model. Neither company immediately commented.
Nvidia’s spokesperson said the company “constantly manage[s] our supply chain to address market conditions.” The statement also stressed that, as both governments recognize, the H20 is not a military product or for government infrastructure. “China won’t rely on American chips for government operations, just like the U.S. government would not rely on chips from China,” the company added.
The development comes as Chinese authorities recently summoned domestic companies, including Tencent and ByteDance, over their H20 chip purchases, signaling concerns about information risks.
Summary and context:
– The suspension highlights ongoing geopolitical and regulatory factors shaping chip supply chains, particularly for products aimed at the Chinese market.
– Nvidia has framed the move as a market-condition adjustment rather than a shift in policy, while reaffirming the non-military nature of the H20.
– The situation could influence how Chinese buyers and global suppliers approach AI chip sourcing amid broader U.S.-China tech tensions.
Possible implications:
– Suppliers involved may renegotiate timelines or seek alternate markets.
– Chinese buyers may pursue other suppliers or domestic alternatives if the pause extends.
– The episode underscores ongoing questions about AI hardware, export controls, and national-security considerations in transcontinental tech supply chains.