Nvidia has stopped producing H20 and 700,000 AI chips intended for China are now sitting idle.
After a temporary green light from the US government, Nvidia had promised Chinese customers about 700,000 H20 AI chips. These chips are stripped-down versions designed to meet US export rules, making them legal for the Chinese market. Now, a new directive from Beijing is forcing local companies to stop buying Nvidia chips over security concerns. As a result, thousands of finished chip dies are sitting unused at Amkor, a US-based packaging partner. The supply chain has ground to a halt, even though Washington and Nvidia had already reached a political agreement. The situation highlights how AI hardware is increasingly caught in the middle of geopolitical tensions. Earlier reports suggested the US is adding tracking chips to AI hardware bound for China.
