An Nvidia chip is seen through a magnifying glass in Beijing, China, on August 1, 2025.
Nvidia has asked some of its component suppliers to stop production related to its made-for-China H20 general processing units, as Beijing cracks down on the American chip darling, The Information reported Friday.
The directive comes weeks after the Chinese government told local tech companies to stop buying the chips due to alleged security concerns, the report said, citing people with knowledge of the matter.
Nvidia reportedly has asked Arizona-based Amkor Technology, which handles the advanced packaging of the company's H20 chips, and South Korea's Samsung Electronics, which supplies memory for them, to halt production. Samsung and Amkor did not immediately respond to CNBC's request for comment.
A separate report from Reuters, citing sources, said that Nvidia had asked Foxconn to suspend work related to the H20s. Foxconn did not immediately respond to a request for comment.
In response to an inquiry from CNBC, an Nvidia spokesperson said "We constantly manage our supply chain to address market conditions."
The news further throws the return of the H20s to the China market in doubt, after Washington said it would issue export licenses, allowing the chip's exports to China — whose shipment had effectively been banned in April.
Last month, the Cyberspace Administration of China had summoned Nvidia regarding national security concerns with the H20s and had asked the company to provide information on the chips.
Beijing has raised concerns that the chips could be have certain tracking technology or "backdoors," allowing them to be operated remotely. U.S. lawmakers have proposed legislation that would require AI chips under export regulations to be equipped with location-tracking systems to avoid their illegal shipments.