NVidia instructed Arizona-based Amkor Technology to stop production of the H20 chips this week and also notified South Korea’s Samsung Electronics, according to the report on Thursday.
Amkor provides advanced packaging for the chip, while Samsung supplies high-bandwidth memory components.
Neither company immediately responded to Reuters’ request for comment.
“We constantly manage our supply chain to address market conditions,” a NVidia spokesperson said.
“As both governments recognize, the H20 is not a military product or for government infrastructure. China won’t rely on American chips for government operations, just as the US government would not rely on chips from China,” the spokesperson added.
The move comes after Chinese authorities last week summoned domestic companies, including internet giants Tencent and ByteDance, over their purchases of H20 chips, citing information security concerns.