Nvidia reportedly orders suppliers to stop work on China AI chip but says new chip in the works

Published on 22/08/2025 - 9:46 GMT+2

Chip elephantine Nvidia has told immoderate of its constituent suppliers to extremity accumulation of its H20 artificial intelligence chip, designed specifically for China, according to a report.

The move comes aft Chinese authorities told section tech companies, including Tencent and ByteDance, to extremity buying nan semiconductors respective weeks agone owed to Beijing having alleged information concerns.

Nvidia told Arizona-based Amkor Technology to halt accumulation of nan H20 chips this week and besides notified South Korea's Samsung Electronics, according to a study by The Information, which cited 2 group acquainted pinch nan matter.  

The United States banned Nvidia from trading its astir powerful chips, nan Blackwell chip, to China successful April, arguing it is basal to safeguard US nationalist and economical information arsenic nan AI world title gains pace.

In July, nan Trump Administration reversed its determination connected H20 chips, which is not Nvidia’s astir powerful chip, mostly owed to waste and acquisition negotiations betwixt Washington and Beijing. 

China’s Cyberspace Administration past period summoned Nvidia complete nationalist information concerns related to nan H20s and asked nan institution to springiness accusation astir nan chips. 

China’s net regulator CAC claimed that US AI experts had said Nvidia’s chips person location search and tin beryllium unopen down remotely. Nvidia denies nan allegations. 

Nvidia CEO Jensen Huang told reporters connected Friday that China had asked astir information “backdoors,” and that nan patient had said they do not exist. 

“Hopefully nan consequence that we’ve fixed to nan Chinese authorities will beryllium sufficient. We’re successful discussions pinch them,” CNBC quoted him arsenic saying, adding that Nvidia had been “surprised” by nan queries.

An Nvidia spokesperson said successful a connection quoted by media that: "We perpetually negociate our proviso concatenation to reside marketplace conditions".

"As some governments recognise, nan H20 is not a subject merchandise aliases for authorities infrastructure. China won't trust connected American chips for authorities operations, conscionable for illustration nan US authorities would not trust connected chips from China," it said.

'New merchandise for China'

Huang besides said connected Friday that Nvidia is discussing a imaginable caller machine spot designed for China pinch nan Trump administration.

Huang was asked astir a imaginable “B30A” semiconductor for AI information centres for China.

“I’m offering a caller merchandise to China for ... AI information centres, nan follow-on to H20,” Huang said successful Taiwan. But he added that "That’s not our determination to make. It’s up to, of course, nan United States government. And we’re successful speech pinch them, but it’s excessively soon to know”.

The Financial Times besides reported this week that Chinese regulators turned against Nvidia owed to “insulting” remarks made by nan US Commerce Secretary Howard Lutnick.

“We don't waste them our champion stuff, not our second-best stuff, not moreover our third-best,” Lutnick told CNBC successful July. 

However, it whitethorn return a fewer years for China to create its ain home AI spot that rivals Nvidia.

Nvidia is nan world’s starring AI spot supplier. Chinese firms specified arsenic Alibaba and ByteDance person said their AI improvement would beryllium hindered without Nvidia’s chips. 

However, China is trying to beforehand spot sovereignty, and companies specified arsenic Huawei are trying to rival Nvidia.