Taiwan’s Inventec says decision on Nvidia’s H200 chip ‘appears to be stuck’ on China’s side

By Wen-Yee Lee

TAIPEI, Jan 20 (Reuters) – Taiwanese server maker Inventec said on Tuesday that a decision on whether Nvidia will be able to sell its H200 artificial intelligence chip in China “appears to be stuck on the China side”.

The U.S. formally approved the chip for export to China last week with some conditions. Reuters reported last week that Chinese customs authorities told customs agents that the H200 chip was not permitted to enter China though it was not clear whether this constituted a formal ban or a temporary measure.

Inventec is a contract manufacturer of notebooks and AI servers that use Nvidia products including the H200 in some products. It produces servers for Chinese customers mainly at its factory in Shanghai.

“It depends on the political direction, because the issue ultimately comes down to whether China allows it. Basically, the United States is open to it, but at the moment it appears to be stuck on the China side,” Inventec’s President Jack Tsai told a press conference in Taipei.

“We will continue to communicate with (Chinese) customers, and if it is allowed, we will do it. If not, there is nothing we can do, because we cannot violate regulations.”

The H200, Nvidia’s second most powerful AI chip, is one of the biggest flashpoints in current U.S.-Sino relations.

Though there is strong demand from Chinese firms, it remains unclear whether Beijing wants to ban the chip outright so that domestic chip companies can flourish, or whether it is still assessing the U.S. restrictions, or whether these measures could be used as a bargaining tactic in talks with Washington.

(Reporting by Wen-Yee Lee; Writing by Farah Master; Editing by Jacqueline Wong and Susan Fenton)