Nvidia suppliers halt H200 output after China blocks chip shipments

Suppliers of parts for Nvidia's H200 chips, which recently gained US approval for sale in China, have paused production after local customs officials blocked shipments of the AI processors, Report informs via Financial Times.

Makers of essential H200 components, such as the printed circuit board, have paused manufacturing following moves to prevent chip shipments entering China, according to two people with knowledge of the matter.

A customs ban, if sustained, would be a blow to Nvidia. The company has heavily lobbied Washington and Beijing to allow sales of its H200 chips, an older generation of AI processors, in China. After US President Donald Trump indicated he would permit sales last month, Nvidia began stepping up production.

The company had expected more than 1 million orders from Chinese clients, according to the people with knowledge of the matter. Its suppliers had been working around the clock to prepare for deliveries initially planned for as early as March.