Reuters recently reported a surprising turn of events for NVIDIA. Citing two sources, the news agency revealed that NVIDIA asked Foxconn to stop making parts for its H20 AI chip. This particular chip was designed specifically for sale in China.
Foxconn, also known as Hon Hai Precision Industry Co Ltd, is a major electronics maker from Taiwan. They handle a lot of the behind-the-scenes production work. Foxconn acts as a key supplier for the components that make up the H20 chip.
NVIDIA responded to the news with a general statement. The company said it always manages its supply chain closely. This helps them react to changes happening in the market, they explained.
What’s missing, though, is a clear reason from NVIDIA. They haven’t said why they suddenly halted H20 production with Foxconn. This move comes after earlier reports suggested NVIDIA received permission from the U.S. government. That permission was to sell even more powerful AI chips than H20 into China.