Production Halted at Key Component Suppliers Including PCBs
Disruptions in Chinese Demand and Delivery Schedules
Suppliers of key components for Nvidia's artificial intelligence (AI) chip 'H200' have reportedly halted production due to customs clearance disruptions in China.
On January 16 (local time), the Financial Times (FT), citing multiple sources, reported that companies supplying H200 components such as printed circuit boards (PCBs) stopped production after actions taken by Chinese customs authorities. It was reported that on January 7, Chinese customs informed logistics firms in the Shenzhen area that they could not accept customs clearance applications related to the H200.
The component suppliers are said to have decided to suspend production, citing increased risk of inventory losses if customs clearance uncertainty persists. It remains unclear how long China's customs blockade will continue.
The Chinese government has been pushing domestic companies to expand the use of Chinese-made AI chips as part of its drive for semiconductor self-sufficiency. It was also reported that, for the H200, which was conditionally approved for export by the Trump administration, the government issued guidance allowing purchases only "when necessary."
The H200 is considered the generation just before Nvidia's latest 'Blackwell' architecture and is optimized for large-scale AI models and generative AI training. Demand from major Chinese IT companies such as Alibaba, ByteDance, and Tencent is reportedly substantial. Chinese companies prefer Nvidia products over domestic chips in terms of performance and management efficiency, but due to government regulations, they are currently using both domestic and Nvidia chips in parallel.
Nvidia had reportedly forecast demand for over one million H200 chips in the Chinese market and had scheduled component deliveries for March. President Trump’s comment that permitting H200 exports would "benefit American manufacturing, jobs, and taxpayers" further boosted market expectations.
However, following the suspension of customs clearance, some Chinese companies have reportedly canceled their H200 orders. There is also speculation that Chinese firms may try to obtain the latest B200 chips-which are banned from import under Trump administration regulations-through the black market instead of the H200.
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