Suppliers producing components for Nvidia’s H200 artificial intelligence chip have paused output after Chinese customs authorities blocked shipments of the processors from entering the country, the Financial Times reported on Friday.
The report, which Reuters could not independently verify, cited two people with knowledge of the matter. Nvidia did not respond to a request for comment outside normal business hours.
According to the FT, Nvidia had been expecting more than one million orders for the H200 from Chinese customers. Parts suppliers had reportedly been operating around the clock to prepare for shipments as early as March, before Chinese customs intervened.
Earlier this week, Chinese customs officials told agents that Nvidia’s H200 chips were not permitted to enter China, Reuters has reported. Separate sources said government officials also summoned domestic technology firms and warned them against purchasing the chips unless absolutely necessary.
Those sources, who spoke on condition of anonymity due to the sensitivity of the issue, said authorities did not provide reasons for the move and did not clarify whether it represents a formal ban or a temporary measure. The lack of guidance has added uncertainty for suppliers and customers across the semiconductor supply chain.
The H200, Nvidia’s second most powerful AI processor, has emerged as a major flashpoint in U.S.–China technology relations. While demand from Chinese firms remains strong, it is unclear whether Beijing intends to block the chip outright to support domestic semiconductor champions, is still weighing broader restrictions, or could use the issue as leverage in negotiations with Washington.
