China voices worries about potential security threats posed by Nvidia's H20 chip designs
Nvidia's sales of its H20 AI chip in China are currently facing significant challenges, with regulatory hurdles and cybersecurity concerns arising from both the U.S. and Chinese governments.
In April 2025, the U.S. government temporarily banned H20 chip sales to China under enhanced export controls, citing national security risks related to enabling China's AI and military advancements [1][2]. The U.S. Commerce Department is yet to issue new export licenses, causing delays in resuming shipments. This decision has been met with bipartisan pushback from lawmakers concerned about the chip’s strategic impact.
On the Chinese side, the Cyberspace Administration of China has summoned Nvidia to address allegations of potential "backdoors" in the H20 chips that might compromise Chinese network and data security, citing Chinese cybersecurity laws [3]. The Administration has issued a warning about potential security risks but has not elaborated on the specific concerns or proposed actions.
The Chinese government's concerns extend to potential threats to user data and privacy rights [4]. Despite these challenges, China still needs Nvidia chips for domestic research and applications, according to 86Research analyst Charlie Chai [5].
Nvidia developed the H20 chip specifically for the Chinese market after the U.S. imposed export restrictions on advanced AI chips in late 2023. The company's products are highly sought after by Chinese tech companies, military bodies, state-run AI research institutes, and universities [6].
However, Nvidia is also facing an antitrust investigation in China over suspected contraventions of the country's anti-monopoly law [7]. The State Administration for Market Regulation is also investigating Nvidia over contraventions of commitments made during its acquisition of Israeli chip designer Mellanox Technologies.
A bill introduced by U.S. Senator Tom Cotton in May aims to curb Chinese access to advanced US semiconductor technology [8]. The concern is that Chinese user data and privacy rights could be affected by the H20 AI chip.
Despite these challenges, Nvidia placed an order with contract chipmaker Taiwan Semiconductor Manufacturing Co for 300,000 H20 chipsets due to strong demand [9]. As of now, the U.S. has recently reversed the ban on Nvidia selling the H20 chip to China [10].
Reuters, BEIJING.
Nvidia did not immediately respond to a request for comment.
References:
- US export controls delay Nvidia's H20 chip sales to China
- Nvidia H20 chip sales in China face regulatory hurdles
- China summons Nvidia over cybersecurity concerns with H20 AI chip
- China raises concerns over potential security risks in Nvidia's H20 AI chip
- China still needs Nvidia chips for domestic research and applications
- Nvidia's products are highly sought after by Chinese tech companies
- Nvidia faces antitrust investigation in China
- U.S. Senator Tom Cotton's bill aims to curb Chinese access to advanced US semiconductor technology
- Nvidia places order for 300,000 H20 chipsets
- US reverses ban on Nvidia selling H20 chip to China
- Amidst concerns over potential backdoors in the H20 AI chip, the Cyberspace Administration of China has summoned Nvidia to address alleged security issues, citing Chinese cybersecurity laws.
- The U.S. government's temporary ban on H20 chip sales to China under enhanced export controls is driven by national security risks associated with AI and military advancements.
- Despite facing an antitrust investigation in China and calls for policy and legislation to limit Chinese access to advanced US semiconductor technology, Nvidia has placed an order for 300,000 H20 chipsets due to strong demand.
