NVIDIA has informed its Chinese customers about limited supplies of its H20 AI chips, the most advanced processor it was permitted to sell in China under U.S. export controls.

The company does not intend to restart production, according to a report by The Information.

The U.S. government’s April ban on H20 chip sales forced Nvidia to cancel customer orders and relinquish manufacturing capacity reserved at Taiwan Semiconductor Manufacturing (TSMC), the report stated, citing two sources familiar with the matter.

Earlier this week, Nvidia announced plans to resume H20 chip sales in China. However, production constraints and regulatory hurdles now pose significant challenges. – Reuters