Nvidia has reportedly suspended production of components for its low-end artificial intelligence (AI) semiconductor "H20," which is designed for the Chinese market.
On August 21 (local time), Bloomberg News, citing IT specialist media outlet The Information, reported that Nvidia had instructed H20 component suppliers, including Samsung and Amkor Technology, to halt production.
According to sources, Nvidia decided to suspend production of these components after the Chinese government recently urged domestic companies to limit their purchases of the H20. In particular, it is reported that the Chinese government has imposed restrictions to prevent the H20 from being used in national security-related work.
Previously, the Donald Trump administration in the United States banned the export of the H20 chip, which Nvidia had designed with reduced performance for the Chinese market, in April. However, last month, the administration reversed its stance and allowed exports. The reason for resuming H20 chip exports is the belief that China could surpass the United States in the chip race by developing its own AI chips. Subsequently, Nvidia also agreed to pay 15% of H20 sales revenue to the U.S. federal government as a condition for export approval.
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