Overview
- Chinese customs instructed agents this week to stop Nvidia’s H200 chips at the border, with officials also cautioning domestic tech firms to avoid purchases unless necessary, according to Reuters and the Financial Times.
- Parts suppliers tied to the H200 have paused or scaled back output after early consignments were turned back in Hong Kong, raising concerns about stranded, highly customized inventory and prompting some order cancellations.
- Nvidia had readied inventory and suppliers for March deliveries following U.S. clearance, with reports of more than 1 million units expected for China and total Chinese orders exceeding 2 million, versus roughly 700,000 on hand.
- U.S. conditions for H200 sales include case‑by‑case licensing, third‑party testing routed through the U.S., and a reported 25% revenue charge, with lawmakers highlighting rules to prevent exports that could worsen domestic component shortages.
- A global squeeze on high‑bandwidth memory from suppliers such as Samsung, SK Hynix, and Micron threatens to cap licensed shipments, while analysts warn prolonged restrictions could erode Nvidia’s China share in favor of domestic alternatives.