Start your day with intelligence. Get The OODA Daily Pulse.
Nvidia has asked some of its component suppliers to stop production related to its made-for-China H20 graphics processing units, as Beijing cracks down on the American chip darling, The Information reported Friday. The directive comes weeks after the Chinese government told local tech companies to stop buying the chips due to alleged security concerns, the report said, citing people with knowledge of the matter. Nvidia has reportedly asked Arizona-based Amkor Technology, which handles the advanced packaging of the company’s H20 chips, and South Korea’s Samsung Electronics, which supplies memory for them, to halt production. Samsung and Amkor did not immediately respond to CNBC’s request for comment. A separate report from Reuters, citing sources, said that Nvidia had asked Foxconn — officially known as Hon Hai
— to suspend work related to the H20s. Foxconn did not immediately respond to a request for comment. In response to an inquiry from CNBC, an Nvidia spokesperson said, “We constantly manage our supply chain to address market conditions.” The news further throws the return of the H20s to the China market in doubt, after Washington said it would issue export licenses to allow the export of the chip to China, after their shipments had effectively been banned in April. Last month, the Cyberspace Administration of China had summoned Nvidia over national security concerns related to the H20s and had asked the company to provide information on the chips.