Why Nvidia’s H200 Chip Shipments To China Hit An Unexpected Wall

Key Highlights

• Several suppliers now fear they may be left holding inventory that cannot be repurposed if shipments remain blocked.
• According to two people cited in the report, parts manufacturers worry that Chinese authorities could permanently stop the imports, forcing costly write-offs. Chu Wei-Chia, an analyst at SemiAnalysis, told the FT that printed circuit boards developed specifically for the H200 chips are highly customised.
• Because of their specialised design, these components cannot easily be diverted to other products, raising the risk of excess stock and wasted production. Approval Granted, But Deliveries Now In LimboThe disruption comes despite the US approving Nvidia’s sale of H200 processors to China as recently as December.
• Following that decision, Nvidia significantly ramped up output to meet anticipated demand.
• CEO Jensen Huang had actively pushed for access to the Chinese market, engaging policymakers in both Washington and Beijing to secure clearance. After US President Donald Trump signalled in December that restrictions could ease, Nvidia moved ahead with plans to fulfil what one source described in the report as more than 1 million orders from Chinese customers.