End of Nvidia's global dominance? Chipmaker summoned by Chinese government
over security fears in H20 chips

Date:
Fri, 08 Aug 2025 19:42:00 +0000

Description:
Chinese regulator summons Nvidia over suspected security risks in its H20
chip.

FULL STORY

Nvidias position in the global AI hardware market could soon be under 
scrutiny following news of an investigation from the Cyberspace 
Administration of China. 

The Chinese regulator has summoned the American chipmaker to explain 
potential backdoor risks in its H20 chips, developed specifically for China
after US export restrictions disrupted prior sales of high-end AI processors. 

The concern stems from US legislative moves proposing location verification
systems on chips intended for export, which Chinese authorities fear could
compromise data sovereignty and user privacy.

Mounting suspicion 

While Nvidia has firmly denied the existence of any such vulnerabilities, the
Chinese governments decision to interrogate the issue introduces a new layer
of uncertainty into the companys already complex relationship with its
second-largest market. 

The regulator has not detailed any specific actions it plans to take, but the
call to clarify potential security flaws suggests the companys access to
Chinese institutions could face added friction. 

Nvidias official position has remained consistent: its chips do not contain
any embedded features that could allow remote access or control. 

In its own words, Cybersecurity is critically important to us, and no
backdoors exist in Nvidia hardware. 

However, this reassurance may not be enough to shift growing skepticism,
especially as U.S. and Chinese policies around technology exports continue to
diverge. 

Meanwhile, Chinese analysts have suggested the move could be a political
gesture, mirroring concerns the US has raised about Chinese tech in recent
years. 

Whats notable is that even amid rising tensions, Nvidia continues to see
robust demand for the H20 chip within China. 

The company has reportedly ordered 300,000 units from TSMC, reflecting the
chips ongoing relevance to Chinese developers, research institutes, and
universities, all of which rely heavily on high-performance AI chips to drive
local advancements. 

Even military and state-backed projects are known to use Nvidia technology. 

Despite public optimism and high-profile visits by Nvidia CEO Jensen Huang to
China, the broader regulatory environment is increasingly unpredictable. 

The regulator is also looking into the acquisition of Israeli chip designer,
Mellanox Technologies, claiming Nvidia violated some of the terms in the 2020
conditional approval of the deal. 

Supply chain uncertainty, potential import limits, or changes in licensing
rules could eventually impact hardware availability and cost. 

As both nations dig deeper into their technology standoffs, Nvidias global
leadership in AI hardware is no longer guaranteed to go unchallenged. 

Via Cybernews and Reuters

======================================================================
Link to news story:
https://www.techradar.com/pro/end-of-nvidias-...
ed-by-chinese-government-over-security-fears-in-h20-chips

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