NVIDIA is looking to stop the production of the H20 chips after China collapses on purchases star-news.press/wp

Nafidia I have asked some of the components suppliers to stop production related to H20 general treatment units I mentioned Friday.

This guidance comes weeks after the Chinese government asked local technology companies to stop buying chips due to alleged security concerns, according to the report, referring to people who have knowledge of the issue.

According to the Arizona -based AMKOR, NVIDIA, which takes the advanced mobilization of the company’s H20 Press, and Samsung Electronics in South Korea, which provides them with memory, to stop production. Samsung and Amkor did not immediately respond to the CNBC request for comment.

A separate report on Reuters, citing sources, said that Nafidia asked Foxconn – officially known as the name Hun Hai – To suspend the work related to H20S. Foxconn did not immediately respond to a request for comment.

In response to an investigation from CNBC, a NVIDIA spokesman said, “We are constantly running our supply chain to address market conditions.”

The news also casts the return of the H20S to the China market, after Washington said it would issue export licenses, allowing the slide to export to China – its shipments were actually banned in April.

Last month, the Electronic Space Administration of China summoned NVIDIA regarding concerns related to national security related to H20S and asked the company to provide information about chips.

Beijing has sparked fears that the chips can have some tracking technology or “background devices”, allowing them to operate them remotely. In May, American Senator Tom Couton and a group out of eight representatives of the US House of Representatives presented Chips Security Law This will require semiconductor companies such as NVIDIA to include security mechanisms and checking the site in advanced artificial intelligence chips.

Speaking to journalists in Taiwan on Friday, CEO of Nvidia Jensen Huang admitted that China had asked questions about “Backdoors”, and that the company has made it clear that it was not present.

“We hope that the response we provided to the Chinese government will be sufficient. We are in discussions with them,” he said, adding that Nafidia was surprised by the inquiries.

“As you know, we asked (Beijing) and urged us to secure licenses for the H20S, for some time and worked hard to help them secure licenses, and we hope that this will be resolved,” he said.

“The market can use H20 with confidence,” Nafidia said in a statement on Friday.

He added: “As both governments realize, H20 is not a military product or government infrastructure. China will not rely on the American chips for government operations, just like the American government will not depend on China’s chips. However, allowing us to use useful business is useful for everyone.”

Last month, China was said to have sent notifications to major technology companies and artificial intelligence developers who urge them not to use H20S, while initially appeared as a soft state. The information was later mentioned that Beijing told some companies, including byteedance, alibaba and TENCENT, to completely stop the orders of the chips, until the completion of the National Security Review.

It was seen as a major victory for NVIDIA when HUANG announced last month that the United States government would allow the company’s H20 chips sales to China. He was pressing against American chips restrictions, which affected the NVIDIA work on the profitable market.

In his comments on Friday, Huang also revealed some of his discussions with US President Donald Trump on the company’s foreign business, saying that he was “informed of the importance of the American AI Tech staple.”

“As you know, this is the beginning of a new industrial revolution, and during this time, artificial intelligence developers, artificial intelligence models, and artificial intelligence applications supporting American technology stack are very important,” said Huang.

He added: “I also made it clear that artificial intelligence will advance all over the world, with or without the United States, and it is important for us to increase the technique of exporting artificial intelligence at a time when this industry is important.”

NVIDIA said it had received $ 4.5 billion in the indirect H20 stock in May, after export restrictions began, and said that sales in the last financial quarter were higher than $ 2.5 billion without any restrictions.

The National Security Auditing, which is now facing the H20S from the Chinese side, highlights NVIDIA’s difficulties in conducting its business amid the incremunition between Washington and Beijing.

Chips Industry analysts also said that Beijing’s actions that enhance its commitment to the self -sufficiency campaigns of its chips and its intention to resist the Trump administration plan to preserve the dominant American bodies in China.