Nvidia has asked several of its suppliers to pause work on its China-focused H20 graphics processing units (GPUs) after Beijing raised security concerns, according to a report by The Information. The move comes just weeks after Chinese regulators instructed local tech companies to stop purchasing the H20s, questioning their safety and citing potential risks of hidden “backdoors.”
Suppliers impacted include Amkor Technology in Arizona, which manages advanced chip packaging, and Samsung Electronics in South Korea, a key memory provider. Separately, Reuters reported that Foxconn was also asked to suspend work on the H20. While the suppliers declined to comment, Nvidia responded to inquiries by stating: “We constantly manage our supply chain to address market conditions.”
The developments raise fresh doubts about Nvidia’s ability to reintroduce the H20 to China. Although the U.S. government had recently approved export licenses for the chip — a move initially seen as a breakthrough for Nvidia in regaining access to its second-largest market — Beijing’s security review has stalled progress. Last month, the Cyberspace Administration of China summoned Nvidia, seeking detailed information on the H20’s design and flagging concerns over potential surveillance or remote-control features.
Speaking in Taiwan, Nvidia CEO Jensen Huang acknowledged the inquiries, noting: “Hopefully the response that we’ve given to the Chinese government will be sufficient. We’re in discussions with them,” while emphasizing that the company had been “surprised” by the questions. He added that Beijing had earlier encouraged Nvidia to pursue export licenses, and said: “Hopefully this will be resolved.”
Nvidia also issued a statement defending the chip’s role, saying: “The market can use the H20 with confidence. As both governments recognize, the H20 is not a military product or for government infrastructure… allowing U.S. chips for beneficial commercial business use is good for everyone.”
Despite these assurances, reports suggest that Chinese tech giants like Alibaba, ByteDance, and Tencent have already paused H20 orders pending the outcome of the review. The setback underscores the growing challenges Nvidia faces as U.S.–China trade tensions intensify.
In May, Nvidia disclosed a $4.5 billion writedown on unsold H20 inventory following U.S. restrictions, adding that quarterly revenues would have been $2.5 billion higher without export curbs. Analysts say the Chinese scrutiny signals Beijing’s determination to accelerate domestic chip independence and push back against Washington’s efforts to maintain U.S. dominance in AI hardware.
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