A sudden customs intervention has disrupted Nvidia’s plans in China, after shipments of its flagship H200 artificial intelligence chip were blocked from entering the country. The move has forced suppliers of key components to pause production, according to a report citing people familiar with the matter.
Early shipments of the H200 processor arrived in Hong Kong earlier this week, catching Nvidia off guard. One source said the company was “caught by surprise” by the customs block. Requests for comment sent to China’s General Administration of Customs and Nvidia did not receive immediate responses, the report said.
The development comes despite approval granted by the United States in December for Nvidia to sell the H200 chips in China. However, suppliers producing critical parts are now worried that Chinese authorities may prevent the chips from entering the country, raising the risk of future write-offs, according to 2 sources.
Chu Wei-Chia, an analyst at SemiAnalysis, said the printed circuit boards made for the H200 are custom-designed and cannot be reused in other products. This has heightened concerns about excess inventory if the block continues.
Nvidia Chief Executive Officer Jensen Huang has repeatedly highlighted the importance of the Chinese market and had actively engaged with policymakers in both Washington and Beijing to secure approval for H200 sales. After US President Donald Trump signaled in December that restrictions could ease, Nvidia ramped up production to meet an estimated demand of over 1 million units from Chinese customers, a source said.
Deliveries were originally planned for March. That timeline is now uncertain as customs officials have not clarified whether the move is temporary or a permanent ban. The report said Chinese customs authorities informed a logistics company in Shenzhen this week that Nvidia’s H200 chips are not allowed into the country, without giving a reason.
Sources added that domestic technology firms have been advised not to purchase Nvidia chips and instead prioritise local alternatives. Authorities are also reportedly discussing whether limited access to H200 chips could be granted to major companies such as Tencent, Alibaba, and ByteDance for projects that need higher performance and simpler maintenance.
Uncertainty is already affecting demand. One supplier said orders for the H200 have been cancelled, while a black market has emerged for Nvidia’s more advanced but restricted B200 and B300 chips.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
