China guides firms away from Nvidia H20 chips

China has urged local companies to avoid Nvidia H20 processors, especially for government work, adding friction to Nvidia’s China revenue recovery and reflecting broader tech policy tensions.

China Urges Firms Not to Use Nvidia H20 Chips in New Guidance

China has issued guidance asking domestic companies to avoid Nvidia Corp.'s H20 processors, with a focus on government or national security work. The notices were circulated to a mix of state-owned and private firms, and people familiar with the matter said the guidance aims to steer procurement away from the chip in sensitive projects.

The guidance is not described as a formal ban, but it tightens the rules around usage and signals the sensitivity of the issue. Nvidia has faced pressure to regain revenue in China, a key market, while policy makers in other capitals push to align technology exports with security and political goals. The notices were reported by multiple sources who asked not to be named given the sensitivity of the topic.

This move fits into a wider trend of tech policy shaping how global supply chains operate. It could push buyers toward domestic suppliers or alternative vendors and may force Nvidia to adjust its sales strategy in China. The message also highlights how security concerns are increasingly interwoven with commercial choices in high tech.

For Nvidia and investors, the development raises questions about revenue stability in a market with tightening controls. In the longer run, China may accelerate its own chip programs and create a more multipolar supply chain, which could change the playbook for multinational chipmakers and the pace of cross border collaboration.

Highlights

Policy shifts like this keep the tech market on its toes and remind us that rules can move faster than supply chains.