Nvidia (NVDA) suppliers have halted the production of H200 chip parts after regional customs authorities obstructed deliveries of the processors, The Financial Times reported Friday, citing two people familiar with the matter.
Manufacturers of specialized components ceased operations this week to avoid incurring inventory write-offs, the report said.
Customs officials in Shenzhen informed logistics firms on Tuesday that applications for clearing the artificial intelligence processors would not be processed, the report said.
Nvidia had anticipated more than 1 million orders from the region and had prepared for a March delivery schedule before the unexpected intervention, the report added.
The tech giant was "caught by surprise" by the customs authorities' move, which coincided with the arrival of initial product batches in Hong Kong, the FT quoted one source as saying.
Nvidia did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Comments