Nvidia has requested Foxconn to suspend work on its H20 artificial intelligence (AI) chip, the most advanced semiconductor the U.S. company is currently allowed to sell in China, according to sources familiar with the matter.
Nvidia Suspends Work on H20 Chip with Foxconn
Two people briefed on the development confirmed that Foxconn (Hon Hai Precision Industry Co. Ltd.), one of Nvidia’s key suppliers, has been asked to pause backend processing work for the H20 chip. The H20 AI chip is Nvidia’s most sophisticated product available to Chinese customers under current U.S. export restrictions.
Nvidia Responds to Supply Chain Adjustments
In a brief statement, Nvidia said: “We constantly manage our supply chain to address market conditions.” The company declined to provide further details about the suspension or whether production timelines would be affected.
Foxconn’s Role in Nvidia’s Supply Chain
Foxconn, best known globally as a major assembler for Apple, also serves as a component supplier and backend processor for Nvidia’s semiconductors.
The reported suspension highlights the growing complexity of U.S.-China technology tensions and their impact on global semiconductor supply chains.
U.S. Restrictions on AI Chip Exports to China
The H20 chip was designed as a compliant alternative after U.S. regulators imposed stricter rules on the sale of advanced AI semiconductors to China in 2023 and 2024.
By limiting export approvals, the U.S. government has sought to curb China’s access to cutting-edge computing power while allowing companies like Nvidia to sell downgraded versions of their technology.
The pause in Foxconn’s work raises questions about the future availability of the H20 and whether Nvidia will adjust its China strategy further.
Key Takeaways
- Nvidia asked Foxconn to suspend work on the H20 AI chip.
- The H20 is the most advanced chip Nvidia can sell in China under U.S. export rules.
- Foxconn handles backend processing as part of Nvidia’s supply chain.
- Nvidia cites supply chain management, without giving further details.
- The move reflects the ongoing U.S.-China semiconductor tensions.
