Nvidia seeking to stop the production of H20 fleas after China represses purchases

Nvidia Asked some of its component suppliers to end the production linked to its general H20 treatment units manufactured in the Chinese, while Beijing is repressed on the darling of the American chip, the information reported on Friday.

The directive comes from weeks after the Chinese government has told local technology companies to stop buying fleas due to alleged security problems, according to the report, citing people knowing the issue.

Nvidia would have asked for Amkor Technology, based in Arizona, which manages the advanced packaging of the company’s H20 fleas, and Samsung Electronics of South Korea, which provides them with memory, to stop production. Samsung and Amkor did not immediately respond to the request for CNBC comments.

A distinct report from Reuters, citing sources, said that Nvidia had asked Foxconn to suspend work related to H20. Foxconn did not immediately respond to a request for comments.

In response to a CNBC survey, an NVIDIA spokesperson said that “we are constantly managing our supply chain to resolve market conditions”.

The news also throws the return of the H20S to the Chinese market in doubt, after Washington said that he would deliver export licenses, allowing the china exports to China – their shipments had actually been prohibited in April.

Last month, the China cyberspace administration convened NVIDIA on national security problems linked to the H20S and asked the company to provide information on fleas.

Beijing has raised fears that fleas could have certain follow -up technologies or “wanderings”, which allows them to operate remotely. In May, the American republican senator Tom Cotton and a bipartite group of eight representatives of the American chamber presented the law on flea safety which would require semiconductor companies like NVIDIA to include safety mechanisms and a verification of the location in their advanced AI chips.

Addressing journalists in Taiwan on Friday, the CEO of Nvidia, Jensen Huang, admitted that China had asked questions about the safety of “waste” and that the company had clearly indicated that they did not exist.

“I hope that the answer we have given to the Chinese government will be sufficient. We are in discussion with them,” he said, adding that Nvidia had been “surprised” by questions.

“As you know, [Beijing] Asked and urged us to obtain licenses for the H20S, for a while and I work hard enough to help them get the licenses, and therefore I hope that it will be resolved, “he said.

Nvidia, in a statement, said on Friday “the market can use the H20 with confidence”.

He added: “As the two governments recognize, the H20 is not a military product or for government infrastructure. China will not count on American tokens for government operations, just as the American government would not rely on China tokens. However, allowing American flea for beneficial commercial use.

Last month, China would have sent opinions to major technological companies and the developers of AI urging them against the use of H20, in what had appeared as a mild mandate. The information later indicated that Beijing had said to certain companies, notably Bytedance, Alibaba and Tencent, to completely stop flea orders, until the completion of a national security examination.

He had been considered a major victory for Nvidia when Huang announced last month that the United States government would authorize sales of the company’s H20 flea in China. He had lobby against the restrictions of American fleas, which had had an impact on Nvidia’s activities on the lucrative market.

On Friday, in his comments, Huang also revealed some of his discussions with US President Donald Trump on business abroad of the company, saying that he had “informed the president of the importance of the American AI technology battery”.

“You know, this is the beginning of a new industrial revolution, and during this time, AI developers, AI models and AI applications supporting the American technological battery are very important,” said Huang.

“I also explained that AI would progress in the world, with or without the United States, and it is important for us to maximize our IA export technology at a time when this industry is important,” he added.

Nvidia said he had taken a boost of $ 4.5 billion in his H20 inventory not sold in May, after export restrictions began and said sales of his last financial quarter were more than $ 2.5 billion without border.

The national security examination that the H20 is now faced on the Chinese side underline the Nvidia’s difficulties in carrying out its activities in the midst of trade uncertainty between Washington and Beijing.

Analysts from the flea industry have also said that Beijing’s actions seem to strengthen its commitment to its own flea self -sufficiency campaigns and its intention to resist the Trump administration plan to maintain the American material of Dominant in China.