(Reuters) -NVidia (NVDA) has told some suppliers of components to suspend the production of its H20 AI chip, specifically designed for the Chinese market, the information reported on Thursday, with two people with direct knowledge of communication.
According to the report, Nvidia has instructed the Arizona-based Amkor technology to stop the production of the H20 chips this week and also to inform the Samsung Electronics in South Korea.
Amkor processes advanced packaging for the chip, while Samsung Electronics supplies high bandwidth memory chips for the model.
Neither of the companies immediately responded to a Reuters request for comments.
In the meantime, Nvidia spokesperson said in a statement: “We are constantly managing our supply chain to tackle market conditions.”
“As both governments recognize, the H20 is not a military product or for government infrastructure. China will not rely on American chips for government operations, just as the US government would not rely on chips from China,” said it.
This is when Chinese authorities called up internal companies called last week, including large internet companies Tencent and Bytedance, about their H20 chip purchases, which express concern about information risks.
(Reporting by Yazhini MV in Bengaluru; Edit by Sumana Nandy)
