Nvidia Chip Component Supplier H200 Halts Production After China Blocks Shipments
JAKARTA - A supplier of components for Nvidia's H200 artificial intelligence chip has temporarily halted production after Chinese customs authorities blocked shipments of the processor from entering the country, the Financial Times reported on Friday.
According to the report, China's policy directly impacted Nvidia's supply chain, which had previously prepared to send H200 chips to the Chinese market on a large scale.
The Financial Times said Nvidia had previously estimated it would receive more than one million orders from Chinese clients. To meet the demand, suppliers are reportedly working almost non-stop to prepare for the fastest delivery in March.
However, the situation changed drastically this week. Chinese customs authorities informed customs agents that Nvidia H200 chips were not allowed to enter China.
Several sources also said that Chinese government officials had called domestic technology companies and warned them not to buy the chips unless absolutely necessary. The sources spoke on condition of anonymity given the sensitivity of the issue, which touches on geopolitical relations and strategic industries.
Until now, Chinese authorities have not given an official reason for the move. They have also not explained whether this policy is a permanent ban or only temporary.
The H200 chip, which is Nvidia's second most powerful AI chip, has become one of the hot spots in the relationship between the United States and China. Demand from Chinese companies remains high, but it is unclear whether Beijing intends to ban the chip completely to make room for domestic chip manufacturers, is still considering further restrictions, or is using it as a bargaining chip in negotiations with Washington.
Amid global technology tensions, AI chips are now not just about computing performance. It has turned into a symbol of strategic power, where decisions at ports and customs desks can shake factories, stock markets, and the world's technology competition map.