Nvidia halts production of China-specific AI chips amid regulatory pressure

Nvidia has directed several of its component suppliers, including Samsung Electronics and Amkor Technology, to pause production of its H20 artificial intelligence (AI) chips tailored exclusively for the Chinese market, Azernews reports, citing foreign media.

This suspension comes shortly after the Chinese government urged domestic technology firms to cease purchasing these customized chips due to alleged security risks.

The move reflects growing regulatory scrutiny and geopolitical tensions affecting the tech supply chain.

Furthermore, Beijing’s directive to local companies to avoid Nvidia’s AI chips reportedly contributed to delays in the launch of DeepSeek’s R2 model, as revealed by last week’s Financial Times report.