S&PGR affirms Amkor Technology Inc. BB' ICR

S&PGR affirms Amkor Technology Inc. BB' ICR

China has banned the NVIDIA H20 AI GPU, citing security concerns, despite US export licenses allowing sales with revenue sharing. This move halts NVIDIA's H20 shipments and production for China, impacting trade amid ongoing US-China negotiations and suspensions of downgraded US AI chip exports until further notice [1].

The Cyberspace Administration of China raised security concerns about the H20 potentially having backdoors. NVIDIA has profusely refuted these claims, stating that none of its GPUs have any security backdoors [1]. Despite this, China has banned the sale of H20 GPUs across the nation, preventing any Chinese firm from placing orders with NVIDIA [1].

The ban also affects other "downgraded US AI chips" until further notice. NVIDIA has suspended production of the H20 chip in Taiwan, pausing all shipments headed to China and general H20 production targeting China. The pause will stay in place until the US and China come to an agreement on trade [1].

This development comes amidst ongoing US-China negotiations and trade tensions. The ban on the H20 GPU may have significant implications for NVIDIA's financial performance and its ability to operate in the Chinese market [1].

References:
[1] https://www.tweaktown.com/news/107333/nvidia-h20-gpus-officially-banned-in-china-production-halted-indefinitely/index.html