China 'Freezes' H20 Chip – Nvidia Halts Production

Nvidia has suspended production of its new H20 chip following pressure from Beijing on Chinese companies to avoid its use, primarily for government purposes, citing national security concerns. The decision complicates the American giant's efforts to recover billions in lost revenue in China.

According to sources, Nvidia has asked Amkor Technology (Arizona), which handles the chip's advanced packaging, and Samsung Electronics (South Korea), which supplies memory, to halt production. Additionally, according to Reuters, Foxconn was also asked to suspend operations related to the H20.

A company spokesperson told CNBC that "Nvidia is constantly managing its supply chain to address market conditions," without providing further clarification.

This move comes at a time when the Trump administration seeks to increase revenue from sales of American technology products in China, while the Chinese government is trying to strengthen its technological autonomy and reduce dependence on American chips.