Nvidia's China restart faces production obstacles, The Information reports

Nvidia NVDA has told its Chinese customers it has limited supplies of H20 chips, the most powerful AI chip it had been allowed to sell to China under U.S. export restrictions, and that it doesn't plan to restart production, The Information reported on Saturday.

The U.S. government's April ban on sales of the H20 chips forced Nvidia to void customer orders and cancel manufacturing capacity it had booked at Taiwan Semiconductor Manufacturing 2330 which makes the chips, the report said, citing two people with knowledge of the matter.

Nvidia said this week that it was planning to resume sales of the H20 chips to China.