Jan 16 (Reuters) – Parts suppliers for Nvidia’s H200 have suspended production after Chinese customs officials blocked newly approved artificial intelligence processors from entering the country, the Financial Times reported on Friday.
Reuters could not immediately verify the report, which cited two people familiar with the matter. Nvidia did not immediately respond to a request for comment outside normal business hours.
Nvidia expects orders from Chinese customers to exceed 1 million, the report said, adding that its suppliers had been operating around the clock to prepare for shipments as early as March.
According to Reuters, Chinese customs authorities told customs officers this week that Nvidia’s H200 chips are not allowed into the country.
The sources also said government officials summoned domestic technology companies and warned them not to buy chips unless necessary.
The sources, who spoke on condition of anonymity due to the sensitivity of the matter, said the authorities did not provide any reasons for their directive or say whether it amounted to a formal ban or a temporary measure.
H200 is Nvidia’s second most powerful artificial intelligence chip and one of the biggest hot spots in current Sino-US relations. Despite strong demand from Chinese companies, it’s unclear whether Beijing wants to ban it outright so that domestic chip companies can thrive, or is still considering restrictions or whether the measures could be used as a bargaining tactic in talks with Washington.
(Reporting by Bipasha Dey in Bengaluru; Editing by Jacqueline Wong and Edwina Gibbs)
