Nvidia suspends work with the H20 chip

Nvidia has contacted component suppliers to halt production of the H20 chip. The company released the chips this week, but Beijing subsequently called on local companies not to use the H20. The company's shares fell 1.9% on the Blue Ocean system.

As a result, its competitor, Cambricon Technologies Corporation's shares rose by almost 10% in just one week.

US-China market relations

Advanced Micro Devices and Nvidia recently received official permission from the US authorities to resume sales to China, under certain conditions.

One of these conditions is a 15% deduction from revenue to the government. At the same time, Chinese customers are also under pressure and are forced to use locally produced chips and abandon American technology.

Local Chinese companies have received notifications from the authorities recommending that they refrain from using certain chips. This message was most likely sent in response to the possibility of equipping chips with more advanced location tracking capabilities.

Nvidia's CEO stated that H20 does not have location tracking capabilities. He also commented that the supply of H20 now depends entirely on the decision of the US authorities.