Suppliers for NVIDIA's H200 artificial intelligence processors have paused production. This halt follows Chinese customs officials blocking the chips from entering the country. The move comes after Chinese government officials previously warned domestic technology companies against purchasing the new processors unless absolutely necessary.
NVIDIA had anticipated significant orders from Chinese clients. Suppliers operated continuously to prepare for these shipments, which were expected as early as March.
Chinese authorities have not provided a formal reason for blocking the H200 chips. This lack of explanation creates uncertainty about whether the action represents a temporary halt or a permanent ban. The development underscores ongoing geopolitical tensions impacting the semiconductor industry.