Production of components for Nvidia's H200 chips has been disrupted due to a blockade by Chinese customs, preventing shipments into China. This development has emerged as Nvidia received its initial shipments in Hong Kong, leading to unexpected challenges for the company.
Despite prior U.S. approval in December for the sale of AI processors to China, uncertainty now looms over the entire situation. Analysts, including Chu Wei-Chia from SemiAnalysis, have raised concerns about the printed circuit boards tailored for the H200, which cannot be repurposed for other uses, leading to potential excess production.
Nvidia’s CEO, Jensen Huang, has actively supported access to the Chinese market, anticipating over 1 million orders following a signal from former U.S. President Donald Trump. However, recent advisories from Chinese authorities have prompted domestic firms to avoid purchasing Nvidia chips in favor of local alternatives. The reasons for the customs blockade are still unclear, raising questions about whether it is a temporary or permanent restriction.
Amid this uncertainty, some Chinese clients are reconsidering their orders, with reports of cancellations emerging. This has led to the rise of a black market for Nvidia's more advanced B200 and B300 chips, reflecting the shifting landscape for high-performance technology in China.