Chinese customs officials have blocked shipments of Nvidia's newly approved H200 artificial intelligence processors from entering the country, the Financial Times reported on Friday. Suppliers of parts for the chips have paused production as a result.
Reuters could not immediately verify the report, which cited two people familiar with the matter. Nvidia did not immediately respond to a request for comment outside regular business hours.
The report said Nvidia had expected more than 1 million orders from Chinese clients. Its suppliers had been operating around the clock to prepare for shipping as early as March.
This week, Chinese customs authorities informed customs agents that Nvidia's H200 chips are not permitted to enter China, Reuters has reported. Government officials have also summoned domestic technology firms to warn them against buying the chips unless necessary.
Sources, speaking anonymously due to the sensitivity of the matter, said authorities provided no reasons for the directives. They gave no indication whether this constitutes a formal ban or a temporary measure.
The H200 is Nvidia's second most powerful AI chip. It has become a significant point of tension in U.S.-China relations. Chinese firms show strong demand for the processor.