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Why parts suppliers of NVIDIA's H200 chip have paused production
17 Jan 2026

Suppliers of components for NVIDIA's H200 AI chip have halted production after Chinese customs officials blocked shipments from entering the country.

The Financial Times reported this citing two people familiar with the matter.

The move comes as a major blow to NVIDIA, which had anticipated over a million orders from Chinese clients and had its suppliers working overtime for March shipments.

Chinese customs authorities block H200 chips
Shipment ban

Chinese customs authorities have told their agents that NVIDIA's H200 chips are not allowed into the country. The news was reported by Reuters.

Unnamed sources also said that government officials have summoned domestic tech firms, warning them against purchasing these chips unless absolutely necessary.

However, no official reason has been given for these directives or whether this is a permanent ban or temporary measure.

A flashpoint in US-China relations
Geopolitical implications

The H200, NVIDIA's second most powerful AI chip, is at the center of current US-China tensions.

Despite strong demand from Chinese companies, it remains unclear if Beijing intends to ban it outright to allow domestic chip firms to thrive.

This might even be used as leverage in negotiations with Washington DC.