Nvidia Suppliers Halt H200 Chip Production After China Blocks Shipments

BEIJING — January 16, 2026 Suppliers producing key components for Nvidia’s H200 artificial intelligence chips have suspended output after Chinese customs officials stopped the processors from entering the country, according to people familiar with the matter.

The pause comes just weeks after the advanced chips were cleared for sale to Chinese customers, raising fresh uncertainty over Beijing’s stance on high-end U.S. semiconductor imports. Nvidia had been expecting strong demand from China, with suppliers reportedly ramping up operations in anticipation of large shipments as early as March.

Chinese customs authorities informed border agents this week that the H200 chips were not permitted to enter the country, prompting immediate disruption across the supply chain. Officials have also privately cautioned domestic technology companies against purchasing the processors unless absolutely necessary, according to sources.

No formal explanation has been given for the move, and it remains unclear whether the action represents a permanent ban, a temporary pause, or a negotiating tactic amid ongoing U.S.-China trade and technology tensions. Authorities have not indicated how long the restrictions might last.

The H200 is Nvidia’s second most powerful AI chip and has become a focal point in the broader rivalry between Washington and Beijing over advanced computing technology. While Chinese firms have shown strong interest in the processor for artificial intelligence workloads, policymakers in Beijing are weighing whether restricting access could accelerate the development of domestic chipmakers.

Nvidia has not publicly commented on the production halt or the customs decision.