Manufacturers of parts for Nvidia’s H200 AI chip, such as its printed circuit board, have suspended production after Chinese customs authorities blocked imports of the chips, the Financial Times reported.
Nvidia expected more than 1 million orders for the H200 from Chinese clients after its sale to China was legalised late last year, and suppliers had been working around the clock to prepare for deliveries that were planned for as early as March, the paper reported, citing unnamed people.
Imports barred
But last Tuesday, Chinese customs officials reportedly told logistics companies in Shenzhen that they could not submit customs clearance applications for H200 chips.
It was unclear if the block was temporary.
Nvidia was reportedly taken by surprise by the customs authorities’ move, which occurred as shipments of H200 chips arrived in Hong Kong last week.
Due to the regulatory uncertainty, parts suppliers suspended production to avoid incurring inventory write-offs, the FT reported.
Parts such as printed circuit boards designed for the H200 cannot be used for other chips, the FT cited SemiAnalysis as saying.
Blackwell demand
Many local customers have cancelled orders for the H200 and are instead switching to Nvidia’s more advanced B200 and B300, which are not allowed for export to China under US law, a Chinese seller of Nvidia AI servers told the FT, leading to an active black market for the chips.
Previous reports have said that Chinese authorities are discussing a potential licensing regime for Nvidia’s chip.
This is likely to limit imports, and may also require companies buying the H200 to also buy domestically produced chips in line with a defined ratio.
